October 30, 2013 / 2:32 PM / in 4 years

Russia's Otkritie Financial Corp buys Petrocommerce bank

MOSCOW, Oct 30 (Reuters) - Russia’s Otkritie Financial Corp. is buying mid-sized Petrocommerce bank from IFD Kapital, an investment company with ties to energy major Lukoil’s largest shareholders, Otkritie said in a statement on Wednesday.

Petrocommerce, ranked among Russia’s 30 biggest lenders by assets, is majority owned by IFD Kapital, which is linked to a group of companies owned by Leonid Fedun and Vagit Alekperov, executives and top shareholders in Lukoil.

As part of the deal, Otkritie will issue new shares totalling 19.9 percent of its capital to be bought by IFD Kapital, using the proceeds to buy no less than 95 percent of Petrocommerce.

The 95 percent stake in Petrocommerce was valued at 18.5 billion roubles ($577 million) for this transaction, Otkritie said.

Russia’s banking sector is dominated by state-owned banks, prompting some smaller and privately-owned banks to merge in a bid to boost their efficiency, though not always successfully.

Otkritie Financial Corp is owned by its directors, including Chairman Vadim Belyaev and Russian businessmen including Alexander Nesis. The company owns Otkritie Bank, Nomos bank and Bank Khanty-Mansiysk.

$1 = 32.0551 Russian roubles Reporting by Oksana Kobzeva; writing by Katya Golubkova; editing by Tom Pfeiffer

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