VTB Bank (PJSC) is once again considering the purchase of Vozrozhdenie Bank, Vedomosti reported May 23.
VTB, which returned to the idea of purchasing Vozrozhdenie at the request of the Russian central bank, is completing due diligence of the lender and will let the regulator know about its decision by June 1, the executive was cited as saying.
The potential acquisition of Vozrozhdenie would strengthen VTB's position in the Moscow region, the news report noted. The price for the potential transaction could amount to between 15 billion Russian rubles and 20 billion rubles, according to Vyacheslav Putilovsky, junior director for bank ratings at Russian rating agency Expert RA.
VTB had already said in January that it would consider the acquisition of Vozrozhdenie, but Kostin later noted that the state-owned lender was not interested in purchasing the bank.
The Russian central bank requested Vozrozhdenie's owners Dmitry and Aleksey Ananiev to sell their controlling stake in the lender following the 2017 bailout of PAO Promsvyazbank, also controlled by the two businessmen. Investment fund Bonum Capital expressed interest in the acquisition of Vozrozhdenie, and the fund's representatives joined the lender's board of directors at the beginning of March. However, RBK Daily reported at the end of March that Dmitry Ananiev still owned a 51.7% stake in Vozrozhdenie via Cyprus-based companies and that the central bank gave him until June 4 to divest the shares.
Meanwhile, Vedomosti also reported May 23 that VTB Group will officially announce the sale of its insurance business to JSC Sogaz on May 25. Kostin was cited as saying that VTB will receive cash as well as shares in the merged insurance business, and that the bank will also participate in its operations.
Russian news agency Prime also reported separately May 24 that Otkritie Financial Corp. Bank transferred almost 40 billion rubles worth of VTB Bank shares to B&N Bank. As a result, B&N now holds a 5.99% stake in VTB, while Otkritie's holding fell from 13.79% to 7.8%. Otkritie Bank's press office said the transfer of VTB Bank's voting shares was carried out as part of capital adequacy management operations.
The Russian central bank bailed out Otkritie and B&N Bank in the second half of 2017 and plans to merge the lenders into one financial institution, possibly by April 2019.
As of May 23, US$1 was equivalent to 61.61 Russian rubles.
