The supervisory board of JSC VTB Bank set a buyout price for the lender's shares in connection with its planned merger with retail unit Bank VTB 24, Reuters reported Oct. 3.
The prices were determined at 3.8 Russian kopecks for each VTB Bank ordinary share, 1 kopeck per Type 1 preference share and 10 kopecks per Type 2 preference share.
The supervisory board of the bank also decided to hold an extraordinary general meeting of shareholders on Nov. 9 with regard to the upcoming merger, the newswire noted.
The share buyback will be offered to those shareholders that will vote against the merger, news portal Finam noted the same day.
The internal merger was first approved by the supervisory board in 2016, as part of VTB Group's strategy to integrate its Russian banks on a single, universal platform. The merger, scheduled for completion by the end of 2017, is intended to streamline the group's Russian retail business and reduce costs.
As of Oct. 3, US$1 was equivalent to 57.93 Russian rubles.