Baring Vostok, the controlling shareholder of Public Stock Co. Orient Express Bank, decided to postpone its search for a buyer for its stake in the lender and plans to participate in the upcoming 5 billion Russian ruble recapitalization of the bank together with other shareholders, Kommersant reported Feb. 1.
The 5 billion ruble capital boost will be approved by Orient Express Bank's board of directors in the near future. Baring Vostok's senior partner Michael Calvey told Kommersant that the planned capital hike is aimed at strengthening the lender's market position and providing financing for strategic plans.
Baring Vostok has been trying to sell its stake in the lender since 2015, but the decision to participate in its recapitalization means that the main shareholder temporarily abandoned the sale plans to wait for a more favorable moment, the newspaper noted.
Baring Vostok funds control 51.6% of Orient Express, businessman Artem Avetisyan owns a 32% stake and the remaining shareholders own holdings of below 5%, according to Kommersant.
As of Jan. 31, US$1 was equivalent to 56.27 Russian rubles.
