ECONOMY

Geniki rights issue

Geniki Bank, majority-owned by France’s Societe Generale, said yesterday its 9-for-10, -210 million rights issue at -4.0 a share will run from October 29 to November 12. The bank will raise funds to boost its capital adequacy. A total of 52,549,145 new common shares will be issued. Geniki shares will trade ex-rights from October 23. Rights will trade from October 29 to November 6. The new shares will be entitled to this year’s dividend payment. After the rights issue, the bank’s outstanding shares will total 110,937,084. Parent Societe Generale, which owns 52.32 percent of the bank, will fully participate in the issue, exercising all its rights, and will also take up any unsubscribed shares. Geniki’s other major shareholder, the Army Pension Fund (MTS) which holds 10.27 percent has said it does not intend to maintain its current stake. The issue adviser is EFG Telesis Finance. Geniki Bank remained in the red in the first half but trimmed group losses to -20.1 million ($28.6 million) on lower loan-loss provisions. (Reuters)