SovcomBank will merge with RosEvroBank – their shareholders agreed on the merger of credit institutions, as per SovcomBank’s report. SovcomBank is to consolidate at least 80% of RosEvroBank’s shares adding another 35% to existing 45%.
The shares will be sold by REG Holding, which unites Russian shareholders of RosEvroBank. Chairman of the Board of RosEvroBank and its co-owner Ilya Brodsky converts most of his shares in the shares of the united bank and will enter its management, including the Supervisory Board.
Until the end of 2018, banks will operate independently conveyed through the press service the Chairman of the Board of SovcomBank Dmitry Gusev.
And after the merger, the Bank is likely to continue to work under the license of SovcomBank, but the final details of the integration plan will be developed by special team consisting of specialists from both banks. After the merger, RosEvroBank will become the core of the corporate business of the united bank, says Mr. Gusev.
The assets of SovcomBank on February 1, 2018 amounted to 708,9 billion RUB, RosEvroBank – 204,75 billion. Thus, the assets of the consolidated bank may be about 913,6 billion.
The Bank may take 14th place in Russia in terms of assets and 3rd place among Russian private banks, giving way to Alfa Bank and Moscow Credit Bank (MCB).
According to SovcomBank, the assets of the joint bank will amount to more than 1 trillion rubles, with capital of more than 100 billion rubles. “The scale of the business of the united bank will allow us to solve problems that previously each of the banks hadindividually were not ready to resolve independently”, – said Mr. Gusev.
In early March, 2018 SovcomBank issued two series of subordinated Eurobonds worth $250 million. Then Mr. Gusev said that the bank needs capital to “be prepared for a major transaction”.
For the first time SovcomBank bought shares in RosEvroBank in 2015. In October 2017 it increased its share to 18.64% by purchasing another 9,16% from REG Holding.
In December last year, SovcomBank became the owner of 34.34% RosEvroBank after buying a share from the German investment fund DEG. And in January 2018 SovcomBank bought another 11% of the credit institution from the European Bank for Reconstruction and Development (EBRD), eventually collecting a package of 45.34% of the bank’s shares.
Chairman of RosEvroBank Ilya Brodsky called the merger of banks “natural result” of the partnership with SovComBank, which began three years ago: “The period of joint work showed that both banks have further strengthened their positions in those niches where they were one of the leaders. In this regard, the synergetic effect of the merger is obvious to both shareholders and clients of both banks.”