Sberbank acquires 99.1% in Switzerland's SLB for $80.5 mln
MOSCOW. Dec 23 (Interfax) - Top Russian bank Sberbank has closed the acquisition of a 99.145% stake in Switzerland's SLB Commercial Bank AG from oil company OJSC Lukoil , Sberbank said in a statement.
The statement said that the acquisition cost came to 75.35 million Swiss francs (around $80.5 million). The deal's cost might be adjusted after the preparation of SLB's financial results by the date the deal closes.
SLB will be renamed Sberbank (Switzerland AG) where the Russian bank plans to develop its syndicated lending and trade financing operations, as well as several other products for major corporate clients.
The Swiss bank will most likely work with the foreign subsidiaries of Sberbank's major Russian clients, as well as take part in the financing of Russian companies' international holdings.
At the start of December 2011, Sberbank chief German Gref said that the transaction with Lukoil had been signed more than a year before. Since that time, both sides were waiting for approval from Switzerland's bank regulator, which is noted for its caution in approving transaction.
The main shareholder is SLB Commercial Bank AG was Lukoil with a 99.1%. Russian state corporation Vnesheconombank owns the remaining share packet. SLB is headquartered in Zurich. The bank provided services on behalf of Lukoil Group in areas such as international financial reporting, corporate accounting, loans, bills of credit, trade financing, documentation, and liquidity management.
As of the end of 2010, SLB's total assets came to 192.4 million Swiss francs (around$207 million) and equity - 78.8 million Swiss francs (around $85 million). The bank's net losses for 2010 came to 5.9 million francs ($6.3 million).
In addition, at the start of September 2011, Sberbank also signed a legally binding agreement for the purchase at 100% stake in another European bank, Austria's Volksbank International AG (VBI) for 1 capital. VBI is the eastern European division of Oesterreichische Volksbanken AG (OEVAG). The bank has representative offices in the Czech Republic, Slovakia, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Slovenia, Romania and Ukraine.
At the time of the agreement's signing, OEVAG owned 51% in VBI while Germany's DZ Bank and WGZ Bank held 24.5%. France's Banque Populaire Caisse d'Epargne (BPCE) also owns 24.5%
According to the agreement, the transaction might come between 585 million euro and 645 million euro depending on VBI's financial results for this year. Prior to the agreement's signing, a purchase price of over 700 million euro was discussed but this was later reduced. An informed source told Interfax that Sberbank had been in negotiations for more favorable terms in the agreement.
It was earlier reported that the purchase of VBI should be closed by the end of 2011. The deadline for closing the transaction is February 15, 2012.