Possible cause freeze – asset quality of both banks
– The project of Association of the Bank “Uniastrum” and “Eastern”, which was announced this summer, was suspended. Reasons — asset quality of both banks and non-obviousness of the effect of the synergy of their businesses, reports the newspaper “Kommersant” citing its sources.
A possible reason for freezing a source close to the “East”, refers to the issues of the Central Bank to the Bank’s asset quality arose after the audit, which ended in early September. Another source familiar with the negotiations, said that the “East” in turn, there are questions about the quality of the assets Uniastrum” and after checking the prospect of unification is far from obvious.
“The regulator until consent to the transaction was not given, as there is no clear understanding of how shareholders plan to close the existing problems, which after the merger will not disappear,” added the sources.
The controlling shareholder of Bank “East” is the Fund Baring Vostok (55,7%), to 24.99% owned by the Bank “Uniastrum”, 8,15% owned by the Russia Partners Fund, a further 8.6% is owned by four minority shareholders and 2.5% — to other shareholders. 80% of the “Uniastrum” belong to Artem Avetisyan, another 9,9% is owned by Sherzod Yusupov and Yuri Danilov. “Uniastrum” became the shareholder of “East” in may 2016, in July, plans were announced for consolidation of banks. According to the rating of “Interfax”, at the end of the first half of “the East” took 46th place in terms of assets, “Uniastrum” — 63-E.
The Federal Antimonopoly service (FAS) approved the merger of the banks in early August. Moreover, as noted by the interlocutors of the newspaper, the FAS has sent two motions on the accession of the “East” to “Uniastrum” and Vice versa. The Federal Antimonopoly service has approved both options, but shareholders there is still no agreement on which option to choose.
“The choice of one of the two options will mean that the Bank’s team to which is attached, is maintained,” says one of the interlocutors. Formally, the “Eastern” larger “JUNIASTRUM”. Any consolidation of the Bank “Uniastrum” will receive about 40%, but at the same time, the Baring of losing control. It is known that Baring Vostok is not interested in investing in Russian assets, and for the second year intends to leave structure of shareholders.
“However, against mergers in which the merged Bank will be the controlling shareholder, the minority shareholders are of the Bank “East”, which complicates the negotiations on the deal,” said one of the interlocutors of the newspaper.