Bashprombank board approves merger with Uralsib
UFA. Sept 14 (Interfax) - Directors at Bashprombank have approved a merger with the Uralsib bank, Bashprombank said in a statement.
The decision was reached on September 9.
The appraiser CJSC Russkaya Otsenka will be hired to determine the market value of issued ordinary and preferred shares, and the ratios for converting shares into Uralsib securities.
Uralsib's supervisory board on September 13 approved a merger with Bashprombank and BFA Bank .
Uralsib estimates it will take six-to-nine months to complete the merger.
Uralsib owns nearly 100% of Bashprombank. Yefim Kogan, son of Uralsib's core owner Vladimir Kogan, is a major shareholder in BFA Bank.
It was reported that in November 2015 the Central Bank board of directors reached a decision on the financial rehabilitation of Uralsib. St. Petersburg-based businessman Vladimir Kogan became the investor for the bank's bailout and bought 82% of the bank from Nikolai Tsvetkov.
The Kommersant newspaper quoted sources as saying in August that there were plans to merge BFA Bank with Uralsib. There are no precedents for financially healthy banks merging with a bank under financial rehabilitation.
Bashprombank was Russia's 590th largest bank by assets, according to the Interfax-100 ranking at the end of H1 2016, and BFA Bank was ranked 77. Uralsib was the 23rd biggest bank at the end of Q1 2016, however there are no data for end-Q2.