On Tuesday 30th March 2009 the Minister of Finance acting on behalf of the Republic of Albania signed the share purchase agreement for the sale of 40% shares it owned in the United Bank of Albania (UBA) to the Islamic Development Bank, which is an international financial institution incorporated according to the “Agreement Establishing the Islamic Development Bank” dated 12 August 1974, located in Kingdom of Saudi Arabia. (This international agreement was ratified by the Republic of Albania by Law no.7740, dated 21.7.1993 “On the ratification of the membership agreement of the Republic of Albania at the Islamic Development Bank”.)

The Islamic Development Bank was an existing shareholder of UBA already owning a 15% stake and exercised its right of pre-emption in the purchase of the shares up for sale, on the basis of Article 2 of the Law no. 9314, dated 11.11.2004 “On privatization of the Shares owned by the Albanian State, in the United Bank of Albania”. The deal will close and become effective after the completion of some typical pre-closing conditions e.g. clearance from the Albanian Competition Authority and approval from the Central Bank of Albania.

This deal is signed in the course of the conclusion of the privatization process of the Albanian state owned second tier-banks that had begun in 1997.

Kalo & Associates, were legal advisors acting on behalf of the Ministry of Finance assisting with, inter alia, the structuring of the transaction, drafting of package of transaction documents, assisting with the negotiations, and on all relevant banking and corporate regulatory matters.

From Kalo & Associates – key lawyers were Alban Caushi (Partner), Jona Bica (Head of Banking/Finance).