Russian Central Bank selling Otkritie Bank

RUSSIA / FSU POLITICS - In Brief 04 Aug 2021 by Alex Teddy
On August 3 the regulator said that it aimed to sell Otrkitie Bank before the end of 2021. The Russian Central Bank (CBR) said that it is seeking a strategic investor to buy the bank. CBR wants to do due diligence and to prepare bidders to take over Otkritie Bank which is one of the major lenders. CBR said that it wants to sell its controlling stake in the bank in 2022 via an IPO. CBR says that it might sell its stake to a major strategic investor to buy it. However, CBR is willing to delay the sale in order to get the best price and the best buyer. Otkritie's insurance and pension arms could be sold separately. Until recently the president of the bank had been against that.Otkritie said that it has set up a system to receive offers from investors who wish to buy Rosgosstrakh - its insurance division. The company was once linked to Generali. Generali is aiming to expand into Russia. the deadline is September 9 2021. In 2017 Otkritie was bailed out. It was close to bankruptcy because of the financial crisis occasioned by sanctions imposed due to the Ukrainian Conflict. The government sought the extradition of Boris Mints - the bank's cofounder - from London. They accused him of embezzling USD 460 million. Otkritie was Russia's biggest private financial institution at the time.If CBR cannot find a suitable buyer to buy its 50% stake then it will sell it with a public share sale on the stock market. The banking sector has been hit by several crises. CBR has started a USD 80 billion mission to improve the financial sector. CBR wants the banks to be more robust and to improve transparency. The banking sector made bumper profits in 2019, 2020 and 2021 despite the pandemic. T...

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