Otkritie FC Bank shareholders decided Friday to merge with Bank Petrocommerce.
In the merging process, Otkritie will issue 18,500,000 ordinary shares at approximately $.74 a share that will be converted to shares of Bank Petrocommerce. It will also issue 98,000,000 preferred A-type shares that likely will be purchased by Vneshekonombank or the Russian Federation government.
Otkritie CEO Dmitry Romaev said this is an important step and strategic move toward consolidating assets within the the banking group. As a part of this merger the banking group will be opening additional branches throughout the country, notably in Moscow.
Otkrite specializes in investment and corporate banking and also deals in retail development ventures in the Russian Federation.
Bank Petrocommerce will continue to operate with Otkritie as its legal successor. Bank Petrocommerce is expected to uphold obligations to its clients.