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Johannesburg - Standard Bank Group [JSE:SBK] said on Friday it will dispose of its stake in Russia's Troika to Sberbank.
In a joint statement, TDM Limited Partnership (TDMP), the 63.6% controlling shareholder of Troika Dialog, led by Ruben Vardanian, Sberbank of Russia (Sberbank), and Standard Bank, said they had agreed on the terms of a transaction by which Sberbank proposes to acquire Troika Dialog.
Standard CEO Jacko Maree said: "While we are reluctant sellers of our stake in Troika Dialog, this transaction presents an enhanced opportunity to connect and service our clients by leveraging our existing strong relationships into the combined Sberbank -Troika Dialog in Russia and the CIS (Commonwealth of Independent States)".
He said preliminary discussions on opportunities flowing from the deal were "encouraging".
"We are confident that our strong African presence, combined with Sberbank and Troika Dialog's regional leadership, will provide an enhanced range of mutual business opportunities," Maree said.
Sberbank is the largest bank in Russia, Central and Eastern Europe, with about 30% of the total assets of the Russian banking system, a market capitalisation of over $75bn and assets exceeding $260bn.
TDMP is to combine Troika Dialog's investment banking capabilities with Sberbank's commercial and retail banking platform.
The new bank will be "ideally positioned for the Russian government's recently-announced privatisation programme", it said.
Sberbank will acquire the entire shareholding of Troika Dialog (comprising TDMP's 63.6% and Standard Bank's 36.4%) for $1bn cash plus an earn-out payment at the end of 2013.
Standard Bank will sell its entire shareholding in Troika Dialog for an initial cash amount equal to its carrying value at December 31 2010 of $372m and will receive an earn-out payment of about 8% of any increase in the value of Troika Dialog as at the end of 2013.
Standard became a significant shareholder in Troika Dialog, a leading independent Russian investment bank, in September 2009, through a transaction in which the group invested $300m in Troika Dialog (comprising cash of $200m and the net asset value of the group's wholly-owned Russian banking subsidiary, ZAO Standard Bank, which was transferred to Troika Dialog), in exchange for its final shareholding of 36.4% of Troika Dialog.
The transaction is subject to formal documentation and a number of regulatory approvals, and is expected to be completed by the end of this year.
In a joint statement, TDM Limited Partnership (TDMP), the 63.6% controlling shareholder of Troika Dialog, led by Ruben Vardanian, Sberbank of Russia (Sberbank), and Standard Bank, said they had agreed on the terms of a transaction by which Sberbank proposes to acquire Troika Dialog.
Standard CEO Jacko Maree said: "While we are reluctant sellers of our stake in Troika Dialog, this transaction presents an enhanced opportunity to connect and service our clients by leveraging our existing strong relationships into the combined Sberbank -Troika Dialog in Russia and the CIS (Commonwealth of Independent States)".
He said preliminary discussions on opportunities flowing from the deal were "encouraging".
"We are confident that our strong African presence, combined with Sberbank and Troika Dialog's regional leadership, will provide an enhanced range of mutual business opportunities," Maree said.
Sberbank is the largest bank in Russia, Central and Eastern Europe, with about 30% of the total assets of the Russian banking system, a market capitalisation of over $75bn and assets exceeding $260bn.
TDMP is to combine Troika Dialog's investment banking capabilities with Sberbank's commercial and retail banking platform.
The new bank will be "ideally positioned for the Russian government's recently-announced privatisation programme", it said.
Sberbank will acquire the entire shareholding of Troika Dialog (comprising TDMP's 63.6% and Standard Bank's 36.4%) for $1bn cash plus an earn-out payment at the end of 2013.
Standard Bank will sell its entire shareholding in Troika Dialog for an initial cash amount equal to its carrying value at December 31 2010 of $372m and will receive an earn-out payment of about 8% of any increase in the value of Troika Dialog as at the end of 2013.
Standard became a significant shareholder in Troika Dialog, a leading independent Russian investment bank, in September 2009, through a transaction in which the group invested $300m in Troika Dialog (comprising cash of $200m and the net asset value of the group's wholly-owned Russian banking subsidiary, ZAO Standard Bank, which was transferred to Troika Dialog), in exchange for its final shareholding of 36.4% of Troika Dialog.
The transaction is subject to formal documentation and a number of regulatory approvals, and is expected to be completed by the end of this year.
