Russia’s Otkritie to buy Nomos Bank

Otkritie Financial Corporation, one of Russia’s leading financial institutions, plans to buy up to 100% of shares in Russia’s Nomos Bank over the next two years, after acquiring one fifth of its shares earlier this month.

In August, Otkritie bought a 20% stake in Nomos Bank from Czech financial group PPF as the former sold off its 26.5% stake. The move marked one of the largest M&A deals in Russian banking in the last few years.

Now Otkritie plans to buy the remaining shares in the bank in its effort to “become Russia’s largest independent and publicly-traded financial group.”

It has already reached an agreement with the owners of another 58.5% of Nomos’ shares. If the transaction goes ahead as planned, the remaining minority shareholders will be issued a buy-out offer for their shares by the end of the year.

The ambitious expansion plan will see consolidated assets increase beyond RUB1trn (€24.5bn), with RUB850bn of this in banking assets.

The total client base will grow to over 3 million individuals and 120,000 corporations.

At the moment Otkritie Bank is in 34th place among Russian banks by asset volume, according to Russia’s news service Interfax. Nomos is the 13th largest Russian bank by assets.

Vadim Belyaev, chief executive of Otkritie Financial Corporation, said: “The scale of Nomos Bank’s business and the diversified structure of Otkritie Financial Corporation [are] an ideal combination for building [the new] business model.”

Otkritie Financial Corporation was founded in 1995. It is owned by its directors, the state-controlled bank VTB and minority shareholder Anatoly Chubais, Russian politician responsible for the post-Soviet privatisation initiatives.

Okritie offers investment and commercial banking services, brokerage and asset management. It has the widest distribution network in Russia. It also has offices in New York, London, Frankfurt, Limassol and Kiev.

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