VTB Supervisory Council approves Vozrozhdenie Bank acquisition
On 25 September 2018, VTB’s Supervisory Council has approved a decision to acquire the controlling stake in Vozrozhdenie Bank from Bonum Capital. The bank earlier received the approvals from the Bank of Russia and the Federal Antimonopoly Service. VTB will acquire at least 85% of Vozrozhdenie stocks during the first phase of the deal. VTB will further make a mandatory offer to all Vozrozhdenie Bank minority shareholders, who will be able to sell their shares until January 2019. The next stage is to define steps on the two banks integration, which is expected to be completed in 2020. The Vozrozhdenie development strategy will strengthen the bank’s positions in the Moscow Region retail and corporate segments. Vozrozhdenie team, which has substantial experience in the Moscow Region and other regions of presence, will be retained. Vozrozhdenie Bank acquisition will allow VTB to significantly increase its retail deposit and loan portfolios. Vozrozhdenie currently has over 750,000 active retail customers, including over 400,000 payroll clients, and 53,000 active corporate customers, including 43,000 small business clients. The bank’s regional network comprises 116 points of sale in 82 Russian cities, including 16 branches and 99 sub-offices. VTB intends to keep key Vozrozhdenie products and services for both retail and corporate customers, simultaneously further developing the product line and improving its competitive advantages using VTB Group’s technological, retail product offering and financial capacities.