International Finance Corporation (IFC), which holds the remaining 7.5% stake in the Russian lender, has decided to sell 2.5% of its shareholding to KBC. This would bring KBC’s shareholding to a total of 95%, while IFC will retain the remaining 5%.
Jan Vanhevel, CEO of the central and eastern Europe business unit at KBC Group welcomed the agreement, saying: Absolut Bank is one of the fastest growing banks in Russia and has doubled its loan book year after year for the last five years. For KBC, the acquisition constitutes a logical and important step in its international expansion. Having established a strong presence in a number of first- and second-wave EU accession countries, KBC is now entering a new emerging European market.
The transaction is subject to regulatory approval from the Central Bank of Russia and the Anti-Trust Commission. KBC expects the deal to close during Q3 2007.
