VTB to reflect sales of Metalloinvest stake in Q4 reporting
MOSCOW. Dec 20 (Interfax) - VTB will reflect the sale of 20% of iron ore and steel holding Metalloinvest in financial reporting for the fourth quarter of 2012, the bank's deputy CEO, Herbert Moos, told reporters.
The deal "will form some of our profit, but I don't think it will have a major impact," Moos said.
Metalloinvest and VTB have said they plan to close the deal by the end of this year.
Metalloinvest's CEO, Eduard Potapov, has said the stake could eventually be used in an IPO, but that this was unlikely to take place in 2013 or 2014.
Metalloinvest acquired VTB's promissory notes for $2.48 billion in March slated to mature December 2012 in order to buy back 20% of its own shares.
VTB acquired the 20% stake in Metalloinvest from Vasily Anisimov in December 2011. According to unofficial reports, the transaction came to $2.5 billion ($1.9 billion of which went to pay off an earlier loan).
Metalloinvest is the largest iron ore producer in Russia and the Commonwealth of Independent States (CIS). Its main production subsidiaries are Lebedinsky Mining & Processing (MGOK) , Mikhailovsky Mining & Processing (MGOK) , Oskol Electrometallurgical Combine (OEMK) and Urals Steel. Billionaire Alisher Usmanov's Gallagher Holdings Limited owns 50% of Metalloinvest. Vladimir Skoch, father of State Duma deputy Andrei Skoch, holds 30% in the holding and VTB owns 20%, acquired from Vasily Anisimov in December 2011. Usmanov's partner in Gallagher is Farhad Moshiri with 10%.