VTB bank granted a loan to Otkrytie Group for the purchase of JSC “Arkhangelsk mining company” from LUKOIL. As per VTB press-service “VTB Bank partly financed this deal. The remaining part was financed by the “Otkrytie”. The loan was granted on market conditions”. Debt financing is secured by the stock of the acquired company and another asset.
Another source reported that “Otkrytie” financed the deal at the expense of their funds that covered “a substantial part” of the transaction. “The collateral for the loan were shares in the target company and another asset was included in the perimeter of the transaction”.
In early April, the Government Commission on monitoring foreign investments in Russia has approved the transaction.
On 25 may it became known that LUKOIL has closed the deal on selling “Arhangelskgeoldobycha” to “Open industrial investments” (belongs to Otkrytie Group). The amount of the transaction $1.45 billion.