ARARATBANK ACQUIRES 100% STAKE IN IZMIRLIAN-EURASIA UCO
ArmInfo
2009-08-25 20:34:00
ArmInfo. ARARATBANK has acquired a 100% stake in Izmirlian-Eurasia
Universal Credit Organization (UCO). Ashot Osipyan ARARATBANK Board
Chairman and Ara Hamazaspyan Country Director of Izmirlian Foundation
(Geneva) signed relevant document in Yerevan on Tuesday.
A. Osipyan said at a press conference that due to this transaction
for nearly $6 million, ARARATBANK will increase in share and
strengthen its position in the financial market as well as get new
clients. "It is our first big investment in the authorized capital
of a company. We had negotiated for acquisition of that universal
organization for over 6 months and have arrived at the logical end,"
he said. A. Osipyan did not rule out further amalgamation of ARARATBANK
and Izmirlian-Eurasia UCO. He said that no changes will be made to
the activity of Izmirlian-Eurasia within the nearest future. "We
will continue lending bigger resources and more intensively," he
said. A. Osipyan is sure that the above transaction will become a
start for new achievements of ARARATBANK.
For his part, Ara Hamazaspyan Country Director of Izmirlian Foundation
said that the Foundation adopted a decision to strengthen cooperation
with ARARATBANK just in such way, which was the most reasonable
way to boost cooperation with its partner given the high level of
development and efficiency of the Armenian banking system. "We believe
that ARARATBANK will continue lending to the small and medium-sized
enterprises more effectively.
We are sure that the programs of further cooperation of ARARATBANK
and Izmirlian Foundation that are currently under discussion will
be a success," he said. He mentioned that Izmirlian Foundation is a
charitable organization funded by the Izmirlian Family representing
the Armenian Diaspora since 1997. It was in 1997 that the Foundation
started investing in implementation of SME support programs in
Armenia. The Foundation launched activity in the lending market of
Armenia in 1999 as part of Eurasia Foundation program. In 2004 it
found Izmirlian-Eurasia UCO to continue that business.
ARARATBANK and Izmirlian Foundation signed a $4 million contract in
June 2007 as part of the program on co-financing of enterprises in
Armenia. As of August 25 2009, the bank co-lent almost $723,000 as
part of this program.
By data of ARARATBANK, total capital of the bank as of August 24 2009
made up 7.8 bln drams, accumulated profit reached 1,3 bln drams. The
bank serves 27 branches located mostly in the regions. As of July
1 2009 the number of ARARATBANK shareholders totaled 84, including
80 individuals. The holder of 74.1% stake in the bank is one of the
largest oil traders in Armenia, Flash Company, and the blocking stake
of 25%+1 share belongs to EBRD.
Izmirlian-Eurasia UCO has recently reported 2.1 bln drams assets,
891.5 mln drams credit portfolio , 2.1 bln drams total capital.