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TPG Talking with VTB Bank About Possible 10% Acquisition

19/10/2010

Central & Eastern Europe, Financial Services, Investment, Private Equity News, Russia

Russia’s VTB Bank appears poised to sell a 10% stake in the government enterprise to one of the world’s largest PE firms, TPG Capital. The two are in early-stage talks as Russia begins trying to shore up its finances in the midst of a current USD 29 billion budget shortfall. If the deal proves successful it could be priced anywhere from USD 2.4 billion to USD 3.1 billion.

The Russian government, which owns 85.5% of VTB Bank, plans to sell an additional 25% over the next few years.

VTB Group (www.vtb.com)

VTB Group is a Russia based financial group. By offering financial services through its subsidiaries in over 20 countries in Russia, the CIS, West Europe, Asia and Africa the company became the second largest financial group in Russia regarding its assets and customer accounts.
VTB Bank (former Vneshtorgbank), the very heart of the VTB Group, has been established in Moscow in 1990 as a state initiative of the RSFSR .  VTB Group deals with investments via VTB Capital, their investments in innovative and high-technology companies are one of the priority development lines of VTB Group’s investment business. The main profile of VTB Bank is retail and corporate banking.

TPG Capital (www.tpg.com)
Known formerly as Texas Pacific Group, TPG Capital is a global investment company specializing in projects with businesses in distress or undergoing significant change. The firm shies away from the daily business operations of portfolio components, preferring instead to assist through value-added activities and their financial expertise. TPG will invest in just about any sector where it finds an attractive investment. The company currently reports a total of USD 47 billion in assets under management.

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