January 27, 2014 / 2:41 PM / in 4 years

Hungary's MKB Bank approves capital increase

BUDAPEST, Jan 27 (Reuters) - The board of directors at Hungary’s loss-making MKB Bank has approved an 80.2 billion forint ($359 million) capital increase through the issuance of new shares in a private placement, MKB said on Monday.

The decision would increase MKB’s registered capital to 225.5 billion forints, MKB said in a filing with the Budapest Stock Exchange. It said German owner BayernLB had already paid 79.1 billion forints for the shares on Friday.

BayernLB will pay the rest by Feb. 7 if minority shareholders do not exercise their pre-emption rights. Before the capital increase, BayernLB held a 98.6 percent stake in MKB, one of the biggest banks in Hungary.

MKB Bank posted a loss of 32 billion forints in the first half of 2013, according to figures published on its website. ($1 = 223.56 Hungarian forints) (Reporting by Gergely Szakacs; editing by Tom Pfeiffer)

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