Deal to buy Magnit shares won't affect VTB regulatory capital
MOSCOW. Feb 26 (Interfax) - The deal for VTB to buy shares in retailer Magnit will not affect the bank's regulatory capital, the bank's deputy CEO, Herbert Moos, said on a conference call.
VTB said in the middle of February that it was buying a 29.1% stake in Magnit from one of the retailer's founders, Sergei Galitsky, for 138 billion rubles.
"The deal to buy the shares in Magnit has not yet closed, so it is probably too soon to assess its impact. The company is generally profitable, so I'm expecting the asset will pay for itself. We don't expect any negative impact from this," Moos said.
Asked wither the investment in Magnit shares would be deducted from VTB's capital, Moos said: "It'll all depend how the deal is structured how the asset will be booked, and depending on that the asset will be weighted either for risk or...Well, it's impossible to say right now because the deal has not been closed. From the point of view of regulatory capital I see no effect from the deal - it'll just be part of our investment," he said.
VTB said in a financial report that it expected to close the purchases of the 19.1% of Magnit during H1 2018. The deal is currently the subject of a regulatory review.