VTB reaches an agreement with Bonum Capital on the acquisition of Bank Vozrozhdenie
VTB and Bonum Capital (Cyprus) LTD have agreed on the key terms for the acquisition of Vozrozhdenie Bank by VTB and signed a memorandum to this effect.
According to the agreement with Bonum Capital, which will arrange the transaction, VTB intends to buy a controlling stake in Vozrozhdenie Bank of at least 75 percent. The transaction is expected to be completed in September once required regulatory approvals are obtained and VTB’s internal corporate procedures regarding the transaction are completed.
Following deal closure, VTB will identify next steps on the integration, which is expected to be concluded in 2020. Vozrozhdenie Bank’s development strategy will aim to further strengthen its foothold in the Moscow Region with a focus on both retail and corporate clients.
The parties of the transaction intend to retain the key products and services available to Vozrozhdenie Bank customers in the retail and corporate segments. The Bank will benefit from access to technologies, product capabilities and financial strength of VTB Group in developing its franchise and competitive advantages.
Gennady Soldatenkov, currently a Member of VTB Bank Management Board, will be appointed the Chairman of Vozrozhdenie Bank’s Management Board. The current Chairman of Vozrozhdenie Bank’s Management Board Mark Nakhmanovich will continue as the Deputy Chairman of the Board of Directors. Vozrozhdenie Bank’s team, with its extensive experience in Moscow and other regions of operation, will also remain at the bank.