VTB has not yet received instructions on the preparation of privatization

VTB has not yet received instructions on the preparation of privatization

VTB awaits the government’s decision regarding the number of shares to be sold and in what timeframe, to address specific study of this issue low stock price of the Bank, said the head of VTB Andrey Kostin.

MOSCOW, 22 Jan. VTB expects the government formalized the problem of privatization of the stake in the Bank, awaiting guidance on the timing, volume and cost, and then will deal with the elaboration of this issue, said the head of the second by assets Bank of the Russian Federation Andrey Kostin.

He noted that privatization is “the right direction”. Earlier, the head of the Ministry of economic development Alexei Ulyukayev proposed to revisit the issue of privatization of the largest Russian banks — Sberbank and VTB, which will improve the situation with capitalization of the domestic banking system.

“Another thing is that today the situation is special, first, our share price is very low, we must not forget that we live in conditions of sanctions against VTB Bank, which, of course, creates a difficult atmosphere, primarily with regard to Western investors and Western investment markets, they the most capacious today,” said Kostin.

“I’d like to wait for the final and formalized a decision of the government regarding the number of shares to be sold, what time frame, are there any cost constraints on this issue in order to engage in a concrete discussion of this question in the present, I repeat, difficult conditions,” he said.

“I’m not against privatization, but I am a realist and would like to first clearly analyze the situation on the market, our capabilities, where these investors, what is their appetite, as today they are considering the possibility of acquiring shares before making any final conclusions, and some final recommendations to give to our government”, — said the head of VTB.

The reduction of the state share in VTB to 50% plus one share provided in the plan of privatisation till the end of 2016. VTB’s main shareholder is Rosimushchestvo, which owns 60,93% stake in the Bank. As of may 25, 2015 Alfa-Bank owned 2,73% stake in VTB, Rosselkhozbank — 2,01%, the State oil Fund of Azerbaijan and the Bank Credit Suisse — on 2,95% of the shares. Order 25,22% of the shares is minority shareholders.