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Report: VTB confirms interest in Vozrozhdenie, hopes to close deal in Q3

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Report: VTB confirms interest in Vozrozhdenie, hopes to close deal in Q3

VTB Bank (PJSC) confirmed its interest in acquiring Vozrozhdenie Bank, and could complete the transaction in the third quarter of 2018, Vedomosti reported June 7, citing VTB CEO Andrey Kostin.

Kostin said there some issues remained unresolved and no binding sale documents have been signed. He did not specify the value of the transaction, but indicated the bank could be priced below its capital.

The executive also said that VTB is negotiating the purchase with investment fund Bonum Capital, which acts on behalf of Vozrozhdenie's main shareholder Dmitry Ananiev. The central bank ordered the businessman to reduce his holding in the lender after PAO Promsvyazbank, also co-owned by Ananiev, was bailed out by the regulator in December 2017.

Investment fund Bonum Capital expressed interest in acquiring Vozrozhdenie earlier in 2018 and currently holds two-thirds of the seats on Vozrozhdenie's board of directors.

If the transaction is finalized, VTB will be required under Russian law to launch an offer to minority shareholders for the remaining Vozrozhdenie shares, Vedomosti noted.

Reuters also cited Kostin as saying that VTB is interested in purchasing one or two regional banks to expand the group's business.