Ukrainian regulator blocks Prominvestbank's purchase by local banker

The National Bank of Ukraine has rejected the request of local investor Serhii Tihipko to approve the indirect acquisition of an over 99% stake in PSC Prominvestbank.

The regulator said Feb. 5 the decision was taken after a comprehensive analysis of acquisition documents submitted by the investor and taking into account the ongoing problems with Prominvestbank's activities.

The planned acquisition of Prominvestbank by Tihipko, who already controls JSC Universal Bank and JSC Taskombank, was earlier approved by the Antimonopoly Committee of Ukraine.

A 99.77% stake in Prominvestbank, owned by State Development Corp. VEB.RF, was sold in March for 268.7 million hryvnia to an undisclosed investor, with financial companies Fortify and VR Capital later named by local media outlets as potential buyers. VEB called the sale of Prominvestbank a violation of international law and pledged at the time to take legal steps to challenge the transaction.

As of Feb. 5, US$1 was equivalent to 28.01 Ukranian hryvnia.