Russia presses ahead with sale of Sberbank stake
Monday, 17 September 2012 18:25

Shares in Sberbank – the third largest bank in Europe after HSBC and Santander – will be listed in London and Moscow

Russia is taking advantage of the recent bounce in stock markets by pressing ahead with the sell-off of a stake – valued at around $5bn (£3.1bn) – in Sberbank, the largest bank in the country.

The shares are to be listed in London and Moscow and will leave Russia's central bank with a 50% stake plus one share in what is described as the third largest bank in Europe after HSBC and Santander.

With 19,000 branches across 11 time zones, Sberbank has major international aspirations and has already bought banks in countries such as Turkey.

The sale comes as stock markets have been buoyed by the latest round of electronic money printing – quantitative easing – by the Federal Reserve, although there is lingering anxiety about whether Spain will ask its eurozone partners for a bailout.

An auction of the shares – in the form of global depository shares – was under way on Monday and is expected to close by Wednesday.

"We expect the transaction to close successfully given the stock's attractive valuation, the bank's strong fundamentals and improved market conditions following the announcement of QE3. Sberbank remains our top pick in Russia: we believe the lender is the best play on the underpenetrated Russian consumer lending market," analysts at Citi said.

The sales being sold represent a 7.58% stake in Sberbank whose assets account for more than a quarter of the entire Russian banking sector.

Herman Gref, the chairman of the Sberbank, said the sale was an opportunity to "diversify" the existing share base. "We view this as a critical step in our broader plan to reinforce Sberbank's position as the leading Russian financial institution, and transform it into one of the world's top performing banks in terms of profitability, operational efficiency and service quality," Gref said.

The sale is part of a privatisation programme that has been delayed by market volatility. Sberbank will have a regulated stock market listing in London for the first time following the sale.

Jill Treanor

guardian.co.uk © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

2017After the U.S. attack on Syria: 3 possible scenarios

Russian experts propose three possible scenarios for U.S.-Russian relations in Syria after the U.S. missile strike on Syrian President Bashar Assad's troops.Scenario 1. Armed conflict between Russia and the U.S.Russian experts do not exclude the poss [ ... ]


2012Greek debt talks deadlocked as lenders demand new wage cuts

A proposal by the debt-stricken country to cut spending by €2bn has been rejected by 'troika' of creditorsNegotiations aimed at unlocking fresh rescue funds for Greece appeared to have hit deadlock on Monday after international lenders rejected € [ ... ]


2012Hungary set to ban slot machines

1 October 2012 Last updated at 17:18 GMT The government wants to curb gambling habits among HungariansHungary's government has announced a ban on slot machines in pubs and cafes in an effort to clamp down on gambling. New laws p [ ... ]


source: http://www.guardian.co.uk/business/2012/sep/17/russia-sale-sberbank-stake-shares

source: http://www.rusbg.com/en/russia-presses-ahead-with-sale-of-sberbank-stake.html

 

Classified Ads

Classified Ads