VTB Bank, the Russia-based lender and AFK Sistema, a diversified public financial corporation in Russia, have said that VTB has exercised a call option to acquire 31.5 % of Sistema-Hals shares from Sistema for a symbolic price of RUB30.
The transaction represents the second stage of an agreement signed between VTB and Sistema-Hals in April 2009. During the first stage, VTB purchased 19.5% of Sistema-Hals shares also for RUB30 and gained the right to exercise this call option. As a result of this second transaction VTB’s share in the authorized capital of Sistema-Hals has increased to 51.2%.
Under the terms of their agreement the partners intend to restructure the debt of Sistema-Hals to VTB. The partners have also agreed the terms governing the implementation of a number of joint investment projects.
Leonid Melamed, president and CEO of Sistema, said: “Our strategic partnership with VTB Bank provides a platform for a productive development of Sistema-Hals and the increase of its asset value. We continue to see great potential in the Russian real estate sector and will participate in the management of Sistema-Hals as we remain one of the key shareholders.”
