Promsvyazbank own­ers seek con­trol of Vozrozh­de­nie

The Pak Banker - - FRONT PAGE -

Share­hold­ers of Rus­sia's Promsvyazbank PJSC agreed to ac­quire a con­trol­ling stake in Bank Vozrozh­de­nie PJSC as lo­cal lenders bol­ster their busi­nesses amid an eco­nomic con­trac­tion.

The ac­qui­si­tion will be "strate­gic, core and long-term" for Promsvyaz­cap­i­tal B.V., which is con­trolled by the Ananyev broth­ers, the com­pany said in an e-mailed state­ment, with­out dis­clos­ing the value or size of the stake. Vozrozh­de­nie shares jumped 1.3 per­cent to 538 rubles as of 10:37 a.m. in Moscow, their first ad­vance in eight days. Promsvyazbank de­clined 0.4 per­cent.

Rus­sian lenders are merg­ing and con­sol­i­dat­ing their oper­a­tions as they seek to de­fend against stag­nat­ing lend­ing, ris­ing bad loans and tougher cap­i­tal re­quire­ments with the in­tro­duc­tion of Basel III rules. Promsvyazbank an­nounced the ac­qui­si­tion of mid­size re­gional len­der Per­vobank PJSC in July, while share­hold­ers of B&N Bank PJSC ac­quired MDM Bank PJSC ear­lier this year, cre­at­ing one of the largest pri­vate lenders in Rus­sia.

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