April 2, 2014

According to the press release dated April 2, Binbank agreed to buy Moskomprivatbank for UAH 1.9 billion (RUB 6 billion) with an allowance for the subordinated loan.

The payment to PrivatBank will be performed "using the funds and Ukrainian assets of the main Binbank’s shareholder Mikhail Shyshkhanov" as stated in the press release. The deal is expected to be closed in the coming days. Deposit Insurance Agency (similar to Ukrainian Depositors Insurance Fund) will help Binbank with the purchase by providing loans of RUB 12 billion (UAH 3.8 billion). The Agency’s money will be used to maintain the Moskomprivatbank liquidity, as well as to implement a project of an independent IT-infrastructure of the bank.

In the near future, at a general meeting of Moskomprivatbank’s shareholders new management will be selected, after which the further activity of Moskomprivatbank will continue under Binbank’s supervision.

Moscomprivatbank is controlled by Privatbank, which in its turn is part of the group "Privat". Its owners are Igor Kolomoiskiy, Gennadiy Bogoliubov and Alexei Martynov. According to the results of 2013, Moscomprivatbank occupies 95th place in terms of its assets and 47th - in terms of the amount of individual funds (RUB 39.9 billion).