VTB to consolidate 100% of Azerbaijani subsidiary, buying stake from local partner
MOSCOW. July 19 (Interfax) - VTB is buying AtaHolding's stake in its subsidiary bank in Azerbaijan, allowing the group to consolidate 100% of the shares in VTB Bank (Azerbaijan).
VTB 24's Supervisory Board calculated that purchasing 124.496 million ordinary shares in the Azerbaijani bank (49% of charter capital) from AtaHolding at a price of $0.252184550427213 per share would be favorable, which means that the Russian bank will pay around $31.4 million for the stake.
VTB Group entered the Azerbaijani market at the end of 2008. VTB Bank (Azerbaijan) received a banking license in March 2009. In November of that year AtaHolding bought a 48.99% stake in the bank while 0.01% was bought by an individual. VTB retained a controlling stake of 51%.
In June VTB ordered an appraisal of the market value of AtaHolding's 49% stake which had assets in the financial sector, industry, tourism and the service sector. VTB CEO Andrei Kostin at the time said it was possible that the shareholder structure of its subsidiary bank in Azerbaijan could be changed.
"The consolidation of VTB Bank (Azerbaijan) shares is being undertaken with the goal of strengthening control and optimizing management of our international network," Interfax was told during VTB press conference.
VTB Bank (Azerbaijan) saw its net loss soar 290% year-on-year to AZN141 million ($82.8 million) in 2016.