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Sunday, June 24, 2018

B&N Bank acquires Moskomprivatbank shares

B&N Bank acquired 100 percent of Moskomprivatbank's shares from Ukrainian PrivatBank on Wednesday as part of the bank's strategy for retail business expansion.

Moskomprivatbank has an estimated value of $168 million, which includes a subordinated loan. The settlements will be affected by the monetary funds and Ukrainian assets of Mikail Shishkhanov, the majority shareholder of B&N Bank.

B&N Bank received a $336 million loan from Deposit Insurance Agency to maintain Moskomprivatbank's liquidity and implement a project related to the creation of the credit institution's independent information technology infrastructure.

The Central Bank of the Russian Federation also approved the rehabilitation procedure of Moskomprivatbank, under which B&N Bank will act as an acquirer. The Central Bank imposed temporary administration on Moskomprivatbank in March, at which point DIA was assigned as Moskomprivatbank's temporary administrator.

Moskomprivatbank shareholders will elect new governing bodies during an upcoming general meeting. Control will be carried out under B&N Bank's control after new governing bodies are elected.