Investment fund Aurora Russia Ltd., which controlled 79.87% of Flexinvest Bank directly and another 20.12% interest via a controlled entity, Kreditmart Finance Ltd., fully pulled out of the lending institution, Lincoln International, which represented Aurora Russia in this deal, reported.
The advisors said no word about the bank’s new shareholding for confidentiality reasons, but only noted that the shares were acquired by several Aurora-affiliated investors from Russia. Information about shareholders has not yet been updated on Flexinvest Bank’s website.
As Lincoln reported, the total transaction price (cash and non-cash components) equaled Rub 333.3 mln. “As part of the transaction the bank’s Rub 144.2 mln mortgage portfolio was assigned to Kreditmart Finance, and Flexinvest Bank’s residual asset value equaled Rub 189.1 mln. Excluding transaction costs transaction proceeds will amount to Rub 172.2 mln," advisors for the deal said.
Flexinvest Bank (former Volzhsky Universal Bank) specializes in credit card loans and drawing retail funds to fund its credit portfolio. Based on Banki.ru data, as of February 1, 2014 Flexinvest Bank ranked 712th in terms of assets (Rub 1.05 bln) among Russian banks.
Aurora Russia is a direct private investment fund focused on funding Russian small and mid-sized enterprises operating on the market of consumer and financial services. All the investment fund’s shares are listed on the London Stock Exchange. The fund has been the owner of Flexinvest Bank since 2008.
