Sources: Otkritie launches due diligence of Rosgosstrakh insurer

MOSCOW, Jan 31 (PRIME) -- Russian financial group Otkritie has launched due diligence of insurer Rosgosstrakh ahead of a merger, sources familiar with the situation told PRIME late on Monday.

In December 2016, a source close to both companies told PRIME that Otkritie and Rosgosstrakh are considering a merger that may create Russia’s largest private financial company with assets exceeding 4 trillion rubles and a client base standing at 50 million people.

After the deal, the current owner of Rosgosstrakh Danil Khachaturov will become a minority owner of Otkritie Holding, whose major shareholders are its founder Vadim Belyayev with a 28.61% stake, IFD Capital with 19.9%, VTB Bank with 9.99%, ICT Group with 9.82%, Ruben Aganbegyan with 7.96%, private pension fund Lukoil-Garant with 7.06%, and Alexander Mamut with 6.67%.

A source close to the Otkritie group said that Rosgosstrakh’s due diligence should start very soon, and will be done by Otkritie Financial Corporation Bank’s First Deputy Management Board Chairman Vladimir Rykunov. Another source familiar with the matter said that later Rykunov may acquire one of top managing positions in Rosgosstrakh.

Otkritie and Rosgosstrakh did not confirm the deal. An Otkritie representative said that Rykunov will continue working in Otkritie, while a Rosgosstrakh representative said that Khachaturov will not leave his position of the company president.

Igor Jurgens, president of the All-Russian Union of Insurers, said that he is unaware of the deal, but it is good if Rykunov is engaged in the deal as it shows serious approach of Otkritie.

Previously, financial experts said the merger will be favorable for Rosgosstrakh as it is a loss-generating company that may increase its capital through the merger. The deal is also positive for the Russian insurance market, as it shows a favorable assessment of conditions by a large investor.

(60.1618 rubles – U.S. $1)

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