RIA NOVOSTI. The Bank of Russia announced Tuesday the launch of the procedure for the bank’s reorganization by folding VTB North-West into the parent bank, VTB Bank, RIA Novosti wired.
A decision to reorganize VTB North-West was adopted last week by its sole shareholder, VTB Bank. VTB North-West will give its creditors notice of the reorganization, the bank said in a statement.
In winter VTB Bank announced its intention to merge with its subsidiary bank, VTB North-West, which is one of the largest banks in the North-West Federal District. To launch a legal procedure VTB Bank needed consent of most shareholders, which it obtained after its annual shareholders meeting on June 4.
VTB Bank shareholders who disagreed with this offer could vote against and sell their shares to the bank at a predetermined price. By decision of VTB Bank’s AGM, shares of the shareholders who were against the merger, were purchased below the market (5.38 kopecks per share). On June 4, 2010, i.e. when VTB Bank held an AGM, the bank’s stocks traded at around 7.70 kopecks on MICEX. In the course of the buyback offer VTB Bank acquired only 120,200 common shares for a total of Rub 6,500.00. Currently, the market value of VTB Bank shares is around 10 kopecks.
