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.
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.