Aequo advises NCH Capital (USA) on the first purchase of insolvent Ukrainian Bank from DGF by investors

On July 16, 2015, the authorised officer of the Deposit Guarantee Fund (DGF) and AGRO HOLDINGS (UKRAINE) LIMITED, a Cypriot subsidiary of the investment fund managed by NCH Capital (USA), signed a Share Purchase Agreement for 100 % of the shares of PJSC ASTRA BANK. This is the first successfully implemented sale of an insolvent bank to a new investor in Ukraine.

The amount of the transaction is UAH 92.1 million. The new owner has also reimbursed expenses for the bank’s provisional administration to the DGF. The bank was purchased to provide financing to Ukrainian manufacturers.

Aequo’s team provided full legal support during the entire acquisition process, including providing legal due diligence of the target, drafting of all documents required for NCH Capital’s qualification as eligible investor by the DGF and a set of documents for participation in the tender process, obtaining all regulatory approvals required for completion of the transaction (AMC acquisition clearance and NBU acquisition approval), drafting and negotiating the Share Purchase Agreement entered into with the Deposit Guarantee Fund, control over fulfillment of conditions precedent to completion of the transaction, further supporting the client within the course of the completion procedure, and advising NCH on tax issues related to the bank’s acquisition.

"This transaction of historical importance for Ukraine has been implemented due to the joint well-coordinated efforts of the NBU, the DGF and the investor teams. The deal has resulted in the investor’s commitment to bring the activities of ASTRA BANK in compliance with the laws of Ukraine, as well as to restore the bank's solvency within 30-day period through UAH 127 million recapitalisation. We are proud that our firm, providing systemic legal support to NCH Group, has helped to attract new foreign investments to Ukraine during the current crisis in the framework of the transaction, reflecting the best interests of Ukraine, the DGF and the investor", said Yulia Kyrpa.