The Ministry of Finance has announced that the cabinet has approved a plan to sell a stake of 50% + 1 share in FHB Bank to a strategic investor.
Our view: The cabinet decision follows a recent tender announcement from the APV, seeking an advisor for the sale of the government's 54.1% stake in FHB Bank, and therefore should come as no surprise to the market. Progress towards further privatisation is potentially positive for the bank, as it could lead to speculation of an eventual buyout of minorities. We consider FHB Bank to be overvalued but we would also expect potential buyers to offer a premium, given the strong interest in CEE banking assets.