Bank of Latvia allows Pirma Banka to reduce share capital

RIGA (BNS) - The Bank of Latvia board on Aug. 18 resolved to allow Pirma Latvijas Komercbanka (Pirma Banka) to reduce its share capital to 6.82 million lats ($11.19 million), a central bank spokesman reported.

The share capital reduction is related to the restructuring of the bank's capital on the entrance of the strategic investor, the press office explained.

The share capital will be reduced as the bank will redeem all A class shares in line with an earlier decision of the bank's shareholders.

Previously, Pirma Banka's share capital was 18.578 million lats, made up of 11.758 million A class common registered shares at 1 lat face value without voting right, 84.432 B class common registered shares at 0.01 lats face value with voting right and 168.864 preference shares at 0.01 lats face value with voting right.

On July 20 the bank's shareholders decided to issue another 428.659 million B class common registered shares with voting right, alienation restrictions and 0.01 lats face value, as well as 60,000 B class common registered shares without voting right at 0.01 lats face value that would form the board's reserve.

Pirma Banka's strategic investor is Germany's Norddeutsche Landesbank.