EghtesadOnline: About 300,000 shareholders of merged banks affiliated to the armed forces have sold their shares since the merger process started in April, says the chief of Securities and Exchange Organization.
Shapour Mohammadi said after the merger process got underway in April, the SEO offered opportunities for shareholders to sell shares at stock market in after-hours trading.
“If the price of their shares drops 1,000 rials per share, the shareholders can sell their shares either at the nominal price or at prices quoted at the time symbols are frozen,” he was quoted as saying by IRIB news agency.
The Central Bank of Iran in March announced a plan to merge Ansar Bank, Bank Hekmat Iranian, Mehr Eqtesad Bank, Ghavamin Bank and Kosar Credit Institution with the state-owned Bank Sepah, according to Financial Tribune.
CBI governor Abdolnasser Hemmati said in April 1.13 million people hold small shares with the merged lenders.
A week later it said the deadline for selling shares of the five banks and credit institutions had been extended to June 13.
Accordingly, each share owned by natural entities in Ghavamin Bank, Kosar Credit Institution and Bank Hekmat Iranian is priced at 1,000 rials
Ansar Bank shareholders can sell their shares at 2,086 rials each. The price for shares owned by legal entities in Bank Hekmat is set at 788 rials equivalent to their nominal price.
As for conditions for Mehr Eqtesad Bank, the shares owned by real entities are to be sold at nominal prices or prices quoted at the time its symbols were frozen, whichever is higher. The price of shares for legal entities is the same as the time when the symbols are frozen.
Mohammadi added that if a shareholder claims his/her shares are worth more, share prices will be assessed based on the assessment.
Otherwise, he added, shareholders will be referred to a special court assigned by the judiciary to handle complains.
“If the court issues a verdict for a shareholder, the merging body and Bank Sepah will be responsible for compensating the loss,” he emphasized, adding that efforts will be made to protect the rights of shareholders.
Media reports say 24 million depositors have 2,150 trillion ($16.5 billion) in deposits with the five merging banks. Likewise, the merging lenders have given 1,300 trillion rials ($10 billion) in loans.
Merging banks have a total of 2,500 branches which will be added to the existing 1,600 Bank Sepah branches. The figure is significant in that the total number of branches after the merger will be 1,000 over and above Bank Melli Iran branches, the country’s largest lender.