Sberbank of Russia (Sberbank) has closed the acquisition of 100% stake in Volksbank International AG (VBI), Vienna.
In the period between signing and closing of the transaction selling shareholders VBI increased capital to cover losses for the first three quarters of 2011, and also agreed to reduce the purchase price from 585 million euros to 80 million euros. Final purchase price is 505 million euros.
This landmark transaction is the first significant acquisition of the Savings Bank outside the CIS and is a step in the transformation of the Savings Bank of major national financial institution into a leading international bank. VBI without VB Romania has 295 offices and more than 600,000 clients. VBI subsidiary banks are in the top 10 financial institutions in terms of assets in Bosnia and Herzegovina, Slovakia, the Czech Republic, Croatia, and in the top 15 financial institutions in Hungary, Serbia and Slovenia. The bank is also present in the Ukraine and has a banking license in Austria.
"The transaction is an important step in the implementation of the international strategy of the Savings Bank, as in transforming Sberbank into a truly global financial institution. Due to its capital and funding opportunities Sberbank has a unique position to unlock the potential of growth in the countries of Central and Eastern Europe. We are confident that the bank will build on the basis of VBI strong platform for organic and inorganic growth, "- said German Gref, Chairman of the Board of Sberbank.
Chairman of the VBI Friedhelm Boshert expressed his satisfaction with the closing of the transaction: "I am very pleased that after more than 20 years of experience in Central and Eastern Europe, we are opening a new page in the history of success with the support of the Savings Bank as a strong new shareholder."