Moscow’s EAST BRIDGE BANK has announced plans to sell 25% of its shares at an open tender. Offers were sent to 50 banks with foreign capital. Thus, the bank wants to tackle the retail business problem, after it had failed to join the deposit insurance system.
According to analysts, it is unusual in Russia to attract investors in this way, but the bank’s plan may prove a success. If no agreement is reached on the deal by mid-November, the bank will begin to shift retail business into the PUSHKINO bank, which is owned by EAST BRIDGE shareholders. If the strategic investor is found, EAST BRIDGE development strategy will be reconsidered so that the bank could focus on corporate clients, while PUSHKINO on retail banking.
EAST BRIDGE capital equals R1.1 billion, assets R3.5b, household deposits — R350m, loans to private individuals — R600m. PUSHKINO capital equals R130m, assets — R2b, household deposits top R700m, consumer credits — R450m.
Source: VREMYA NOVOSTEI, August 25, 2006
