14 Aug 2018 18:00

VTB plans to consolidate around 90% of Vozrozhdenie

MOSCOW. Aug 14 (Interfax) - VTB is planning to consolidate around 90% of the shares in Vozrozhdenie Bank , VTB's deputy CEO, Anatoly Pechatnikov, told reporters.

"We're aiming for a figure of over 90%. Yes, there is indeed a block of shares that trades freely on the market and which is owned by minority shareholders. They look like they will remain in free float if the minority shareholders do not take up a mandatory offer to buy them out," he said, when asked about VTB's plans to further increase its stake in Vozrozhdenie.

VTB and investment fund Bonum Capital (Cyprus) Ltd have reached agreement on the key terms of a deal for VTB to buy Vozrozhdenie Bank and the parties have signed a memorandum, VTB said in a press release on August 14.

According to the agreements reached with Bonum Capital which is the organizer of the transaction, VTB is planning to buy a controlling stake in Vozrozhdenie (at least 75%). The parties are planning to conclude the deal in September following approvals from all necessary regulatory and corporate decisions by VTB Group, the press release said.

Following closure of the deal, steps for the future integration of the banks, to be wrapped up in 2020, will be determined. Vozrozhdenie's development strategy will envisage strengthening its position in the Moscow region market for work with both retail and corporate clients.

The mandatory offer to buy out minority shareholders will be made at the end of the fourth quarter of 2018, after the deal has been closed, VTB's Pechatnikov said.

He said Vozrozhdenie's shares would be delisted from the Moscow Exchange if the offer is not taken up. A delisting would take place ahead of the full integration of the two banks in 2020.

Before December 2017, the bank was controlled by brothers Alexei and Dmitry Ananyev via Promsyvaz Capital B.V. The shareholder structure later altered. At the end of 2017, companies with Cyprus-registered shareholders accounted for around 90% of Vozrozhdenie's charter capital.

All these companies are Cyprus-registered and their owners are defined in the report as citizens and residents of Cyprus. Vozrozhdenie's shareholder structure was as follows: Bimersano Services Ltd - 9.48%, Wipasena Holding Limited - 9.23%, Nordan Limited - 9.66%, Bervessa Holding Ltd - 9.48%, Reldans Holding Ltd - 9.36%, Notilsera Holding Ltd - 9.18%, Tamilani Holding Ltd - 8.7%, Rotilesa Holding Ltd - 8.56% and Skiberti Limited - 8.35%. These companies own a combined 86% of Vozrozhdenie ordinary shares.

In keeping with a Central Bank prescription, the Ananyev brothers had to lower their stake in the bank to 10%, as from December 15, 2017, Promsvyazbank , which was controlled by the same principal shareholders, started bail-out procedures.