Two investment companies merged in Armenia: ``Armenbrok`` acquired ``Capital Investments``

ArmInfo.The investment company Armenbrok OJSC successfully completed the acquisition of a stake in Capital Investments CJSC. As a result of the transaction, the investment company Armenbrok became the sole owner of Capital Investments CJSC.

As noted in the official statement of both companies, the corresponding permits of the Central Bank of Armenia and the State Commission for the Protection of Economic Competition were obtained to complete the transaction. The transaction was closed on June 13, 2019. As specifically stated in the message, despite the fact that Capital Investments is affiliated with another company Capital Asset Management, the latter did not participate in the transaction, and will continue to operate as an independent legal entity. It is noted that Capital Investments has been working in the capital market of Armenia since 2006 on the basis of a license issued by the Central Bank of Armenia. Thanks to effective management, the company managed to achieve high results and become one of the market leaders. According to company executives, the merger transaction has become profitable for both parties, taking into account the competitive conditions in the market and the prospects for further activities. According to Aram Kayfajyan, General Director of Armenbrok OJSC, Capital Investments strategy and business will be fully integrated into the activities of Armenbrok. According to him, buying Capital Investments shares is a great honor for ''Armenbrok''. "We have a great responsibility to cooperate with partners and clients of Capital Investments and assure that they will continue to receive individual and high-quality service," Kaifajyan said. Executive Director and main shareholder of Capital Investments Tigran Karapetyan, in an interview with ArmInfo, emphasized that this company is likely to be merged by Armenbrok and will continue to work in attracting portfolio investments, while the Capital Asset Management, headed by him, will focus on further management of investment and voluntary pension funds. To note, over the years of work, Capital Investments has gained a high reputation in the market thanks to its active and competent work. The company conducted the first securitization of mortgage loans, acted as an underwriter for a large number of debt securities issues, including such major construction companies as Shen Concern and Elite Group, as well as Inecobank and Converse Bank. According to the head of AmRating rating agency Emmanuil Mkrtchyan, the merger of two leading investment companies in Armenia reflects the difficult situation in the country's financial market, which is characterized by a significant decline in investment attractiveness in recent years, a decline in the stock market and, as a result, almost total absence of institutional and portfolio investors in the market.