Russia’s VTB Bank to buy at least 75% in Vozrozhdenie Bank

MOSCOW, Aug 14 (PRIME) -- Russia’s second largest bank VTB has signed a memorandum to buy at least 75% in Vozrozhdenie Bank with Bonum Capital (Cyprus) LTD fund, VTB said in a statement on Tuesday.

VTB plans to close the acquisition Bank in September after it receives all regulatory and corporate approvals and finish integration with Vozrozhdenie in 2020.

Vozrozhdenie will focus on strengthening its position on the Moscow Exchange, VTB said.

Also on Tuesday, Vozrozhdenie Bank terminated its contract with CEO Mark Nakhmanovich, who will be replaced by Gennady Soldatenkov, a member of VTB’s management board.

Vozrozhdenie’s core owner is Dmitry Ananyev, who previously controlled Promsvyazbank together with his brother Alexei. A group of investors of Promsvyazbank earlier asked a U.K. court to arrest U.S. $15.6 million and 11 million euros worth of assets of the Ananyev brothers demanding redemption of money spent in 2017 on debt secured by stakes in companies controlled by them.

The central bank also launched a bailout of Promsvyazbank previously, and put up a controlling stake in Vozrozhdenie for sale as owners of banks undergoing bailouts are not allowed to control other banks. VTB CEO Andrei Kostin in June confirmed the bank’s interest to Vozrozhdenie, and later said that the deal may happen only if the asset is clear from all possible legal claims and consequences.

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