Sberbank announces agreement to acquire Volksbank International

The Russian Sberbank and the shareholders of Volksbank International (VBI) have signed a definitive agreement for the acquisition of 100 percent of VBI by Sberbank. The transaction parameter does not include VB Romania, VBI’s banking subsidiary in Romania. The agreed deal price will be 1.0x VBI book value (excluding VB Romania) ranging from EUR 585 million to EUR 645 million depending on business performance of VBI in 2011. The transaction is expected to be finalized by end-2011, after legal approvements in Russia, Austria and other national jurisdictions have been obtained.

Volksbank International, reuniting VBAG (Österreichische Volksbanken), BPCE, DZ BANK and WGZ BANK, will see Sberbank acquire ongoing financing contracts worth EUR 2.5 billion. In addition, at the closing of the transaction, VBAG will grant Sberbank a financing line of EUR 500 million, with a 5 year maturity.

“The acquisition of Volksbank International is an important milestone in delivering on Sberbank’s 2014 strategy,” said Herman Gref, CEO and Chairman of the Executive Board of Sberbank, today in Vienna. “This will give us access to the attractive and growing markets of Central and Eastern Europe, and it will serve as a platform for organic growth and further acquisitions in the region. I am also confident that the 600,000 clients of Volksbank International and its employees will benefit from Sberbank’s support of VBI’s business and will enjoy new opportunities arising from our ownership.”

Gerald Wenzel, the CEO of VBAG, commented: “This transaction offers significant value for VBI’s shareholders and provides compelling opportunities for VBI’s customers and employees. We are convinced that Sberbank is ideally suited to make the further investments required to meet the significant growth opportunities in CEE. For VBAG, this transaction also marks an important milestone in its ongoing change process“.

Volksbank International has 291 branches and over 600.000 clients. VBI’s total assets, excluding Romania, reached EUR 9.4 billion at end-June 2011.

Sberbak is the largest bank in Russia, accounting for about 27 percent of the aggregate Russian banking assets. The bank has the largest countrywide branch network with 17 regional head offices and more than 19,000 outlets as well as subsidiary banks in Kazakhstan, Ukraine and Belarus, a branch in India, and representative offices in Germany and China.

Société Générale and J.P.Morgan acted as financial advisors to Sberbank. Troika Dialog also advised on the transaction. Ithuba Capital acted as sole financial advisor to VBAG, DZ BANK and WGZ BANK, and Deutsche Bank acted as sole financial advisor to BPCE.