30 Dec 2022 09:45

Russian PM allows RNCB shares to be transferred to VTB

MOSCOW. Dec 30 (Interfax) - Prime Minister Mikhail Mishustin has signed an order for the government to contribute shares in Russian National Commercial Bank (RNCB) to the charter capital of state bank VTB , on the condition that the Crimean bank remain a legal entity.

A law allowing the government to contribute 100% of RNCB shares to the charter capital of VTB went into effect in October and the Crimean bank is expected to become part of Russia's second largest banking group next year. The placement price of the new VTB shares, which Russia will pay for with the RNCB shares, will be determined based on the weighted average exchange price in the six months prior to the bank's supervisory board making the decision on the price.

VTB's board on Wednesday approved the issue of holding an extraordinary general meeting to consider the placement of new common shares. The deadline for ballots in the mail-in vote is January 30, and the date of record for the meeting is January 8.

VTB bank did not say what the new share issue is for or specify its parameters. The bank has not yet responded to Interfax questions.

RNCB chief executive Mikhail Yakunin said earlier this month that Crimea's largest bank will become part of VTB Group in 2023 and that the bank is now being appraised. "Naturally, an appraisal is needed for the transfer of shares. Obviously, appraisal processes will be concluded," Yakunin said.

All of RNCB's subsidiaries are also expected to become part of VTB Group.

RNCB was the 27th largest bank in the Interfax-100 ranking at the end of 2021, with capital of 59.6 billion rubles and assets of 334.8 billion rubles.