RIA NOVOSTI. Promsvyazbank that ranks among 30 largest banks in Russia is prepared to buy out from Bank Nizhny Novgorod minority shareholders their holdings and bring its equity position to 100% from the current 99.1934%, Promsvyazbank said in a press release.
Bank Nizhny Novgorod (one of five biggest banks in the region) experienced during the crisis problems relating to the mass withdrawal of private deposits and it is being rehabilitated by Promsvyazbank. The primary objective is to hammer out the credit portfolio’s sectorial structure, as it was overbalanced in favor of real estate development and construction industries. Currently under formation at the Nizhny Novgorod-based lender are SME and retail divisions, head of Promsvyazbank’s department for support of investment activities Vitaly Mironov told the news agency in May.
The mandatory buyout offer was made on June 1, 2009.The price for the stocks subject to buyout was set at Rub 1.15 per common registered non-documentary share. July 21 was the date as of which the list of the bank’s stockholders was compiled.
Subsequently the Nizhny Novgorod-based lending institution will be folded into Promsvyazbank.
