MDM-Bank and URSA Bank to set up holding

4 December 2008 (08:05)

MDM-Bank and URSA Bank announced recently that their stockholders decided to put their shares together in order to set up a banking holding and thus one of Russia’s leading universal banks.

‘Following the merger, the new bank, with its 72-billion-ruble capital and 523 billion RUR worth of assets is to become one of the country’s major banks. This merger of two strong and reputable banks results from in-depth strategic analysis and is bound to be mutually beneficial. In fact, the new bank will be able to take advantage of over 500 offices located in all of the country’s federal districts,’ their statement says.

The Holding’s Board of Directors will consist of some of both banks’ large stockholders, including the IFC and the EBRD representatives. In addition to merging the shareholdings, a detailed integration plan will be drawn up. According to the plan, the merger is to be completed within twelve to eighteen months. In the meantime, both banks will operate independently.

MDM-Bank’s BOD Chairman Oleg Vyugin is to chair the Holding’s Board of Directors.

URSA Bank’s BOD Chairman Igor Kim is to chair MDM-Bank’s Supervisory Board.

MDM-Bank’s current Chairman of the Supervisory Board Igor Kuzin is to become the Holding’s General Director.

‘It took me and Igor Kim a lot of time to look into the goals behind creating a major bank with great competitive potential that is sure to make an impact on the country’s financial sector’s development. We mean to use the expertise of the best professionals. The new bank’s values will include the determination to suit the highest international standards in the fields of corporate management, great quality customer service, professional personnel, and social responsibility,’ S. Popov said.

‘In terms of strategy, the decision has been supported by both bank’s BODs. Both businesses share the belief in informational transparency and high corporate management standards. The banks’ stockholders and directors feel positive that this belief is an important part of the new bank’s reputation,’ Oleg Vyugin added.

‘This merger is a step towards a better future. We all talk the same language, we are sure the new holding will be a success, and we are prepared to launch this unprecedented merger. We’ve got enough resources to do this, as MDM-Bank and URSA Bank’s liquidity comes to $1.5bn and $1.3bn, respectively,’ Igor Kim noted.

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