Bank of Moscow may sell Ukrainian subsidiary to Metinvest co-owner - source
KYIV. Dec 14 (Interfax) - Bank of Moscow may sell its subsidiary in Ukraine BM Bank to Russian businessman Vadim Novinsky, who owns a stake in Metinvest, a source in banking circles told Interfax.
"Due diligence is now being done at the bank, and a deal could be concluded in the first quarter of next year. The bank's new owner could be Russian businessman Vadim Novinsky," this source said.
President and Chairman at VTB Andrei Kostin said not long ago that VTB intended to sell BM Bank, which it owns through Bank of Moscow. Kostin said that the bank's foreign subsidiaries are interesting to large Russian players, particularly Alfa-Bank .
BM Bank was set up in 2005. As of October 1 this year, Bank of Moscow owned 99.93% of its stock.
According to the National Bank of Ukraine, BM Bank was the 44th largest bank by assets among the 175 operating in the country at the beginning of October.
Novinsky's main asset is Ukraine's Smart-Holding. Smart-Holding's investment operations are aimed at projects in Ukraine, other Commonwealth of Independent States countries, and Europe. The group's largest investment is in the Ukrainian mining and metals group Metinvest - Smart-Holding has a 25% in Metinvest.