Promsvyazbank participated in the privatization of two equity stakes in Yarsotsbank, based in Yaroslavl, which were owned by the government of the Yaroslavl region (5.0097%) and the city of Yaroslavl (4.975%), Promsvyazbank’s press service reported.
The bank’s shares were privatized via a public offer and funds to be paid for the acquired securities will go to the budgets of the Yaroslavl region and Yaroslavl. The decision by the regional and municipal authorities to sell the stocks was driven by the execution of the regional anti-crisis program and anti-crisis recommendations of the Russian government.
Following the privatization of 998,472 shares (9.9847% of the charter capital), Promsvyazbank’s equity position in Yarsotsbank rose to 61.91%.
The purchase of Yarsotsbank’s equity stakes at the privatization tender is another step towards integration of two lending institutions, said the press release. “The stake held by one of Russia’s largest private banks in Yarsotsbank’s equity will enable the regional lender to bolster positions by phasing in advanced technologies and renewing the product mix and longer term will expand its possibilities to lend households and businesses in the region. We understand what an important role Yarsotsbank plays in the region (its clientele includes dozens of municipal enterprises and a number of significant facilities), therefore we’ll continue intensive operations to support economic development of Yaroslavl and the region," commented on the event Igor Smelyansky, Promsvyazbank director for asset integration and Yarsotsbank board chairman.
According to the data from news agency Banki.ru and Interfax-CEA, as of July 1, 2009 net assets held by Promsvyazbank were equal to Rub 405.4 bln (11th place in Russia). Net assets held by Yaroslavl Commercial Bank of Social Development, as of July 1, 2009, stood at Rub 5.3 bln (255th among Russian banks). Both lending institutions are members of the national deposit insurance system.
