INTERFAX. Investment funds Starr Russia Investments III and JCF FPK bought 19.99% stakes in Investtorgbank for a total of Rub 5 bln, the lender’s board chairman Vladimir Gudkov told the media Thursday. «The transaction price slightly topped $200 mln and new shareholders paid Rub 2.5 bln each for their equity stakes» — Gudkov said. As wired earlier, the shares were sold by Vladimir Udaltsov and Vladimir Gudkov, who reduced their interests from 19.2% and 19.5% to 3.1%, respectively. Investment Trade Business Holding, which according to the bank’s financials is 44% owned by Elena Feofanova, decreased its interest from 19.7% to 12.2%.
According to Gudkov, the bank mulls floating additional shares in July-August with the current and new shareholders involved, as a result of which the bank’s equity capital will climb to Rub 8 bln from the current Rub 2.9 bln. «Tomorrow the shareholder meeting should give the go-ahead to the SPO. The lender will register its SPO with CBR in early August and the bank will be ranked among the Top 35 of the country’s largest banks» — the bank’s board chairman said. After the SPO Starr Russia Investments III and JCF FPK will own 19.99% of Investtorgbank each. The equity position held by the Gudkov-controlled group of shareholders will equal 52%.
Virtually all funds derived by the Russian shareholders from the deal are expected to be directed towards the purchase of SPO shares. By 2011, if the new shareholders agree, the bank could stage an IPO. According to Gudkov, an agreement is presently valid that with all possible additional share issues the new shareholders’ stakes will remain unchanged. Representatives from Starr Russia Investments and JCF FPK told the media that they view their investments in the lending institution as mid- and long-term. «We’re long-term investors. No preliminary targets we have about the investment horizon. We’ll be the bank’s shareholders for as long as we can help it expand» — said Tim Hanford, managing director and co-head of FPK Capital (an investment bank that runs J. C. Flowers, whose structure is JCF FPK), noting that the mid-term prospect is 5 years. «Our cash injections are of long-term nature, their goal is not to get fast profits, but to promote the lender’s long-term growth and improve its margins» — Starr Russia Investments representative Joel Epstein said.
Investtorgbank’s assets will reach Rub 110—115 bln in 2010 and equity capital will come to Rub 14 bln. «The lending institution’s indicators double every year» — Gudkov said. Starr Russia Investments III is owned by one of the US oldest private investment funds, Starr Foundation. The fund was incorporated in 1955 by Cornelius Vander Starr, the founder of American International Group (AIG). At present, the fund is run by former AIG chairman and chief executive Moris Greenberg.
