VTB BANK
JSC VTB Bank (VTBR)
VTB acquires Sarovbusinessbank
VTB has reached an agreement with the shareholders on the acquisition of 81% stake in Sarovbusinessbank, one of the leading banks in the Nizhny Novgorod Region. A memorandum has been signedbetween VTB and the shareholders of Sarovbusinessbank.
The parties expectto close the deal bythe end of this year, subject to due regulatory and corporate approvals. The final size of the stake will be determined once VTB makes the mandatory buyback offer to the minority shareholders.
Whenthe transactionis finalised, VTB will determine the steps for further integration of the banks, which is planned to be completed in 2020 with Sarovbusinessbankmergerinto VTB bank. Its development strategy will focus on strengthening the bank'smarket position in the Nizhny Novgorod Region.
Prior tothe banks' integration, Sarovbusinessbank's key product and service linewillbe retainedand diversified withVTB Group's insurance and pension products. Further stepsinclude integrating the ATM networks and synchronising the key elements of the business processes using the technological capabilities of VTB Group. Sarovbusinessbank'steam, which has extensive experience in the Nizhny Novgorod Region, will be retained.
"Sarovbusinessbank is one of the leaders inthe banking sector across the Volga region serving over 180,000 active clients, it is a profitable and sustainable franchise. Thedealwill support VTB's market share expansion in retail deposit and lending markets. Along with the access to familiar products and services, the clients of the merged bank will additionally benefit from client service capabilities of VTB Group,"said Anatoly Pechatnikov, Deputy President and Chairman of VTB Bank Management Board.
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| ISIN: | US46630Q2021 |
| Category Code: | MSCH |
| TIDM: | VTBR |
| LEI Code: | 253400V1H6ART1UQ0N98 |
| Sequence No.: | 6163 |
| EQS News ID: | 732289 |
| End of Announcement | EQS News Service |
