On 15 November 2007, VTB24 (CJSC), the retail banking arm of VTB Group, announced an offer to exchange/acquire shares of OJSC Bank VTB North-West. This transaction is an important step in the integration process of VTB North-West into the VTB Group, which was approved by VTB Supervisory Council on 16 October 2007.
"We are making this offer on previously agreed terms in order not to disadvantage minority shareholders during the integration process of VTB North-West. We will be very happy to welcome these shareholders as shareholders of VTB bank or pay out cash if they prefer." said Andrey Kostin, VTB Chairman and CEO.
Under the terms of the VTB24 offer, VTB North-West shares can be exchanged for VTB Bank shares at the rate of 1:361 from 15 November to 14 December 2007. Alternatively, VTB North-West shareholders can choose to sell their shares within the period specified above at RUR 41.72 per share. Shareholders can also split their holdings in VTB North-West, with one part of shares to be exchanged for VTB Bank shares, and the other part to be sold.
The procedure for share exchange/sale is simple. Relevant agreements can be executed in more than 50 VTB North-West offices specially assigned for the purpose. These offices have been selected as the most convenient for the Bank's minority shareholders. During the last five days of the offer period, some of the offices will extend their opening hours to 22:00. Agreements can be executed in a single visit on production of the correct documentation. Individuals will need to confirm their identity with a passport, while corporate entities will have to present constituent documents and confirmation of the authorized person's power of attorney. No Registrar's fees will be payable on exchange/transfer of shares under the terms of the offer. Shareholders can use a special directory-inquiry service and a toll-free hotline at: 8 (800) 200-7899.
Details of the offer and locations of the offices engaged in executing agreements are available at VTB North-West web site: www.vtb-sz.ru, at the Bank's offices or through the inquiry service.