Promsvyazbank ('PSB'), one of Russia's largest privately owned banks, today announced the completion of the sale of 14.37% of PSB's ordinary share capital by Commerzbank Auslandsbanken Holding AG (Germany) to the Bank's majority shareholder, Promsvyaz Capital B.V. The transaction was closed on 18 June, 2012 and has already been approved by regulatory authorities.
The sale of shares by the subsidiary of German banking group, Commerzbank AG, will result in PSB Capital B.V.'s share of the bank's equity capital increasing to 88.25%. The European Bank for Reconstruction and Development's 11.75% stake in the bank will remain unchanged.
Commerzbank has been a core shareholder in PSB since 2006. In January 2012, it announced its intention to exercise a previously agreed put option with Promsvyaz Capital B.V.
Commenting on the announcement, Artem Konstandian, President of PSB, said, 'We have enjoyed a solid and mutually beneficial partnership with Commerzbank since it first invested in our bank in 2006. Since then we have grown strongly, increasing total assets almost threefold to $17.5 billion by the end of 2011. Our branch network has risen from 186 points of sale in 2006 to 290 now. And total net loans to customers rose from $4.4 billion at the end of 2006 to over $12.3 billion at the end of 2011.
'While Commerzbank is no longer a shareholder, we will continue to maintain our strong relationship with them.Ó
PSB's majority shareholder, Promsvyaz Capital B.V., is a diversified conglomerate with investments in various sectors of the Russian economy. Founded in 1992, the Group operates as a private equity fund investing in financial services, media, system integration and real estate.
The European Bank for Reconstruction and Development (EBRD) has been a shareholder in PSB since 2010. EBRD is an international financial institution that supports projects in 29 countries from central Europe to central Asia. The Bank invests mainly in private enterprises, provides project financing for banks and corporate, both new ventures and existing companies. It also works with publicly-owned companies to support privatization, restructuring of state-owned firms and improvement of municipal services. EBRD is owned by 63 countries and two intergovernmental institutions.