VTB increases stake in Bank of Moscow to 80.57%, consolidates Bank of Moscow into VTB Group
VTB Group has today increased its stake in Bank of Moscow to 80.57% as VTBDebt Center, a 100% subsidiary of VTB Group acquired additional shares from Bank of Moscow minority shareholders.
The transaction was done in accordance with the General Agreement on measures for financial support of Bank of Moscow, which was signed in July 2011 by Bank of Moscow, the Deposit Insurance Agency (DIA) and VTB Group companies - VTB Debt Center and VTB Pension Administrator. According to the General Agreement, after VTB Group consolidates BoM shares up to at least 75%, the DIA is to grant a 10 year loan of up to RUB 295 billion to BoM at a below market interest rate. The proceeds of the loan will be invested into government securities of the Russian Federation The transaction will allow the Bank of Moscow to book a profit with an economic effect of RUB 150 billion under IFRS.
Andrey Kostin, VTB Bank President and Chairman of the Management Board, said "Acting in line with Bank of Moscow financial support plan, we have reached one of the key targets and consolidated more than 80% of BoM shares. Integration of Bank of Moscow into VTB Group will significantly enhance the Group's position on the Russian banking market, increase the Group's branch network and improve the quality of products and services for both corporate and retail customers."
As a further step of the implementation of the General Agreement VTB Group is expected to provide additional capital to BoM in the amount of c. RUB 100 billion.
VTB Press Office
Tel.: (495) 783-17-17
Fax: (495) 783-18-95
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