Russia's VTB bank sale to reap $3.25 billion: report

13th February 2011, Comments 0 comments

Russia will sell a 10 percent stake in its second-biggest lender, state-owned VTB bank, at a price of $6.25 per Global Depositary Receipt (GDR), the RIA Novosti news agency reported Sunday.

"The price is close to the market one and consisted of $6.25 per GDR," the agency cited a source close to the deal as saying after the books closed on Friday. An official announcement will be made on Monday.

Selling at that price, the government stands to reap at least $3.25 billion (2.4 billion euros) for state coffers from the deal, a second public offering for VTB, the Vedomosti business daily reported.

Two investors, US investment fund TPG and Italian group Generali, have expressed intentions to buy the shares, according to press reports.

The government, which currently owns 85.5 percent of VTB, will issue a decree on the sale on Monday, Vedomosti reported.

Russia earlier announced plans to sell a second 10 percent stake in VTB this year, but Finance Minister Alexei Kudrin said this month that there would not be another public sale in 2011.

In 2007, VTB sold a 22.5 percent stake for around $8 billion in an initial public offering (IPO) in London and Moscow.

Russia last year unveiled a huge privatisation drive worth up to $58 billion in a dramatic return to such sales which were largely mothballed after the chaotic privatisations of the 1990s.

© 2011 AFP

0 Comments To This Article