KOMMERSANT. The Russian market has seen the first signs when banks are put up for sale by owners that failed to increase capitals to the CBR threshold, Kommersant business daily wrote on Monday.
Starting January 1, 2010 the minimal threshold for a bank’s capital is Rub 90 mln. Of 22 banks that violated this requirement as of January 1, 2010, seven lending institutions lost their licenses, seven lenders ceased operations and one bank was reorganized into a non-banking lending institution. Market participants expected the price tags of the remaining banks to drop, which aroused interest of potential buyers.
Zerich Bank management board chairman Yury Korsakov said that co-owners of financial group Zerich (unites the management company, the private pension fund, the bank of the same name and Zerich Capital Management) closed the transaction to acquire Zenit Business Bank, based in Orel. “The lender was purchased by the co-owners of Zerich Group and their partners," Korsakov specified declining to disclose the transaction price. For the first time Zerich’s co-owners voiced the aspiration to acquire a bank that needs a capital increase at the end of 2009. Turning the acquired bank into a hub, the group plans to roll out retail business (opposed to Zenit Business Bank Zerich Bank holds no license to attract private deposits).
At the end of 2009 Zenit Business Bank’s capital stood at Rub 52 mln. In line with the data disclosed by the lender on the central bank’s web site, before the transaction 61.54% of the bank was held by limited liability company Accord and a 38.46% stake was in the hands of FSK Chaika. The bank’s managers and their relatives are specified as co-owners of these concerns.
Before the sale Zenit Business Bank’s capital was increased by its previous owners to Rub 95 mln, which was one of the terms of the deal, Korsakov said. According to a source close to the bank’s previous owners, the lender was acquired for Rub 60 mln, i.e. slightly more than 0.6 of the equity (increased).
Zenit Business Bank was sold far cheaper than midsized Russian banks were sold before the crisis when the average ratio equaled 2—2.5 of equity. For instance, in summer 2007 Bank Zenit picked up 50% of Lipetskcombank at 2.25 of equity. During the crisis there were virtually no public deals to sell medium-sized banks, therefore the exact level of prices is unknown.
