Ukio Bankas Falls to 47-Month Low on Stadium Deal: Vilnius Mover
AB Ukio Bankas (UKB1L) Group, Lithuania’s biggest publicly traded bank, fell to the lowest in almost four years after saying it took ownership of a sports arena developer from borrowers who pledged the company as collateral.
The shares fell as much as 4 percent on the Nasdaq OMX Vilnius exchange in the Lithuanian capital, closing down 2.6 percent at 0.148 euros ($0.19), the lowest since Dec. 1, 2008, according to data compiled by Bloomberg. Volume of 298,999 shares was five times the three-month average.
Ukio Bankas increased its stake in UAB Zalgirio Sporto Arena to 100 percent by taking over 94.9 percent of shares, valued at 357 million litai ($132 million), from debtors, the lender said in a statement before trading today. Its shares have fallen during five of the last six trading sessions since Oct. 29, when the bank reported a group net loss of 44 million litai for nine months of this year.
By taking over the shares of the stadium developer, the bank said it would “be able to accelerate the development and implementation of the real estate project carried out by the company, and also will avoid possible loan impairment losses.”
To contact the reporter on this story: Bryan Bradley in Vilnius at firstname.lastname@example.org