Rosbank valued at 1.05x equity for deal with TCS Holding

MOSCOW. May 29 (Interfax) - Rosbank is valued at 1.05x equity audited to International Financial Reporting Standards as of the end of 2023 for the deal to integrate it into IPJSC TCS Holding, the holding said in a statement with reference to a decision by its board of directors.

The valuation reflects claims on subordinated debt and other assets.

Equity was 226.3 billion rubles as of December 31, 2023 so the deal could cost 237.6 billion rubles.

One Rosbank share is valued at 129.4 rubles.

Rosbank shares soared 9% to 125.2 rubles each on the Moscow Exchange immediately following the news.

It was previously reported that Rosbank could be valued at 0.9-1.1x equity for the deal to integrate into TCS Holding.

TCS Holding could issue 130 million ordinary shares by private subscription at 3,423.62 rubles per share. The potential volume of the additional issue at the placement price is 445.071 billion rubles.

"The total number of shares to be placed for the transaction is, according to estimates by the board of directors, up to 70 million shares [up to 239.7 billion rubles]. The declared additional issue of up to 130 million shares includes a legislatively required reserve of 60 million shares for exercise by existing shareholders of pre-emptive rights to buy. Unused additional shares approved for issue will be canceled," the holding said.

The group still expects the additional share issue to be finalized and the transaction to close by the end of the third quarter of 2024, given the need to obtain regulatory approvals.