Hogan Lovells Advises OTKRITIE on its USD 100 Million Sale of a Stake to IFC
31 March 2011
MOSCOW, 31 March 2011 - Hogan Lovells advised OTKRITIE Financial Corporation ("OTKRITIE"), one of the leading financial institutions in Russia, on its sale of a 15.7% stake in OTKRITIE Bank to International Financial Corporation (IFC), a member of the World Bank Group, for USD 100 Million. The deal was completed on 31 March 2011.
Agreement between the shareholders was signed on 19 August 2010, with a series of key steps being taken in the period between the agreement and completion. These steps include the integration of three Russian banking entities in October 2010 and the subsequent creation of an efficient and profitable combined banking business which now ranks as a top 30 institution as per the Central Bank of Russia. As a result of this investment, OTKRITIE retains 67.3% of OTKRITIE Bank's capital while the Russian state Deposit Insurance Agency maintains its 17% stake.
Hogan Lovells' lawyers advised OTKRITIE on all aspects of the deal, including review and negotiation of various transaction documents (share purchase agreement, shareholders agreement, put option agreement, policy agreement and share retention agreement).
The Hogan Lovells team was jointly led by Oxana Balayan, Managing Partner and Head of corporate practice in Moscow, and Richard Cowie, partner in corporate practice, and involved Nigel Read (Partner, London, corporate), Konstantin Kontievsky (Associate, corporate) and Bourn Collier (Associate, corporate).
Managing Partner in Moscow, Oxana Balayan, comments:
"We are pleased to have, once again, advised OTKRITIE on its transaction. This deal further strengthens our relationship with the Company, for whom we successfully acted on its sale of a 19.9% interest to Russian state-owned bank JSC Bank VTB in 2009."