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JSC VTB Bank (VTBR)
VTB and SOGAZ close deal to merge insurance assets
31-Oct-2018 / 18:11 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
VTB and SOGAZ close deal to merge insurance assets
VTB Group has closed the deal to sell 100 percent in its insurance unit, VTB
Insurance, to SOGAZ Insurance Group. The transaction includes all companies
within VTB Insurance Group, including VTB Life Insurance and VTB Medical
Insurance. All necessary regulatory approvals were obtained. The insurance
assets will be integrated into SOGAZ with VTB receiving a 10 percent stake
in the merged company and a seat on its board of directors, as well as
compensation in cash. The parties do not disclose the transaction's
financial terms.
VTB Insurance Group will continue to fulfil its commitments to the customers
in full until the integration with SOGAZ is completed.
Within the first stage of the merger following the closure of the
acquisition deal, VTB Insurance Group will continue to operate under its
brand, switching to SOGAZ's brand once the integration process is completed.
Based on the forecasted IFRS financial results for 2018, the aggregate
premiums paid to SOGAZ and VTB Insurance groups could reach over RUB 330
billion, while their cumulative assets could exceed RUB 670 billion.
When the transaction is completed, VTB and SOGAZ are expected to cooperate
in selling insurance products to VTB Group customers and banking products to
SOGAZ Group customers.
The deal to sell the insurance assets will help VTB Group focus on its
banking business, while retaining a stake in a major insurance company set
to become a market leader following the merger. In addition, VTB Group
acquires in SOGAZ a major partner that will offer reliable insurance
coverage to VTB clients.
ISIN: US46630Q2021
Category Code: MSCU
TIDM: VTBR
LEI Code: 253400V1H6ART1UQ0N98
Sequence No.: 6395
EQS News ID: 740211
End of Announcement EQS News Service
(END) Dow Jones Newswires
October 31, 2018 13:12 ET (17:12 GMT)
