VTB ready to keep Rosgosstrakh in group's perimeter in absence of any 'worthwhile' offers on price

ST. PETERSBURG. July 7 (Interfax) - VTB is not ready to sell Rosgosstrakh at any price, if it does not receive a reasonable offer from potential buyers, and will hold on to the company, VTB Deputy Chairman of the Board Dmitry Pyanov told Interfax on the sidelines of the Bank of Russia Financial Congress.

VTB considers the Rosgosstrakh group, insurance assets acquired as part of a deal with Otkritie Bank, as a non-complimentary business for the bank and is considering selling the company in the medium term. In its Q1 IFRS financials, VTB classified Rosgosstrakh as an asset for subsequent sale.

In June, VTB head Andrey Kostin said that the bank had not yet finalized its plans to sell Rosgosstrakh, pointing out that due diligence was underway inside the company.

"We are not ready to sell the asset at any price. When Andrei Leonidovich said that he was "looking" at the future of Rosgosstrakh, this means that there was access to a first circle of interested parties, so we are going to the second circle to see what they can offer," Pyanov said.

"If a trip to market leads to us not finding a worthwhile offer, we may decide to leave it. We have a clear understanding of the break-even level by how this asset is on the balance sheet and its liquidation value," he said.