BCLP Represents Baring Vostok Capital Partners on Sale of Stake by Baring Vostok Funds in Vostochny Bank
BCLP successfully represented private equity investor Baring Vostok Capital Partners on the sale of a stake by Baring Vostok funds in Vostochny Bank.
The purchaser Sovcombank has entered into binding agreements with Baring Vostok funds, as well as Finvision and Sherzod Yusupov, to acquire their stakes in Vostochny Bank. The transaction is expected to close in the next several weeks, following approvals from the Bank of Russia and the Russian Federal Antimonopoly Service. Terms of the transaction, which was concluded on market terms, were not disclosed. Sovcombank plans to fully integrate Vostochny Bank within 12-18 months.
London Partners Ian Ivory (M&A & Corporate Finance) and Roman Khodykin (Litigation & Investigations) led the BCLP team and were supported by Moscow Counsel Nikolay Kholshev with Nadia Hubbuck, Elena Matlak, Rimma Malinskaya, Ruslan Nurullaev, Valentina Mikhaylova, Andrey Neminuschiy and Daria Sergeeva. M&A/Corporate Finance Partner Ekaterina Dedova in Moscow supervised and led the overall deal management for the Russian aspects of the transaction.
PJSC Sovcombank is a systematically important bank with assets of RUB 1.5 trillion (IFRS). The bank employs 17,000 people in 2,000 offices across Russia – in 2,334 branches and mini offices located in 988 towns in cities. The bank serves 9 million retail clients and 200,000 corporate clients. Sovcombank has been assigned the following ratings from international agencies: a ‘BB’ rating with ‘positive’ outlook from Standard & Poor’s, a ‘Ba1’ rating with ‘stable’ outlook from Moody’s and a ‘BB+’ rating with ‘stable’ outlook from Fitch Ratings. Its credit ratings from Russian agencies include an ‘A+’ rating with ‘positive’ outlook from ACRA, a ‘ruAA’ rating with ‘stable’ outlook from Expert RA and an ‘AA-‘ rating with ‘stable’ outlook from National Credit Ratings agency. Sovcombank’s IFRS financial accounts are audited by Ernst & Young.
Vostochny Bank is a retail bank with assets of RUB 192 billion (IFRS). For more than 15 years, it has focused on retail loans. It is one of top 10 largest card issuers in Russia. Vostochny employs 10,000 employees in 570 offices, the majority of which are located in the Russian Far East, primarily in smaller towns. The bank operates in every municipality in the Russian Far East that has a population of more than 10,000. It is a member of the Deposit Insurance System and is included in the registry of credit organizations treated as significant players in the payment services market by Bank of Russia.
Baring Vostok focuses on private equity investments in Russia, Kazakhstan and other countries in the region. Since 1994, Baring Vostok funds have invested approximately USD 3 billion in around 80 companies. Baring Vostok’s long-standing investors include institutional investors from the United States, Western Europe, Asia and the Middle East. Its portfolio companies include such market leaders as OZON, Kaspi, VkusVill, Familia, Solopharm, Skyeng and Viasat among many others.
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