Banking Giants Merge: Tinkoff Takes the Lead in Rosbank Integration
March 22, 2024, 9:49 am
Tinkoff Bank has taken the reins in the integration process with Rosbank within the TCS Holding perimeter. The key player in this merger is Tinkoff's CEO, Stanislav Bliznyuk, as reported by "Ъ". Sources revealed that discussions have already begun regarding the closure of Rosbank's unprofitable business lines, with a focus on those generating less than 30% return on capital. Rosbank's overall profitability in 2023 was a mere 13%, significantly lower than Tinkoff's 33.5% and the market average of 25.9%. Talks also touched upon Rosbank's branch network, consisting of ten branches and 210 additional offices, while Tinkoff operates without physical branches. Both banks denied the accuracy of the information, emphasizing that the integration proposal is subject to shareholder approval. Experts predict a two-year integration process, warning of potential clashes in business approaches and corporate culture. The primary shareholder, Interros owned by Vladimir Potanin, aims to optimize financial assets through this merger. The TCS Holding board of directors will propose the integration of Rosbank at an extraordinary shareholders' meeting in mid-March.
Title: Interros Backs Tinkoff-Rosbank Merger into Unified Group
Description: Interros has endorsed the integration of Tinkoff and Rosbank into a unified banking group, according to the company's owner, Vladimir Potanin. Potanin believes that merging the two banks will benefit clients, shareholders, and regulators, enhancing product offerings, user convenience, and financial stability. The integration will be based on fair market valuation, with Tinkoff receiving an adequate premium. Both banks will retain their licenses, brands, teams, and customer service standards. Potanin anticipates improved customer service and increased market value through the combined competencies of both banks. Rosbank's expertise in corporate and private client services, international banking experience, and top reliability rating among Russian banks complement Tinkoff's innovative solutions, focus on technology, and large retail customer base. The TCS Holding board set the share placement price for Rosbank acquisition at 3423.62 rubles per share, planning to issue 130 million shares. Shareholders will make the final decision at an extraordinary general meeting on May 8. Interros acquired Rosbank from Societe Generale in April 2022 and purchased a 35% stake in Tinkoff from businessman Oleg Tinkov's family trust. Tinkoff's team leads the integration process, with CEO Stanislav Bliznyuk playing a pivotal role, as reported by "Коммерсантъ".
Title: Interros Backs Tinkoff-Rosbank Merger into Unified Group
Description: Interros has endorsed the integration of Tinkoff and Rosbank into a unified banking group, according to the company's owner, Vladimir Potanin. Potanin believes that merging the two banks will benefit clients, shareholders, and regulators, enhancing product offerings, user convenience, and financial stability. The integration will be based on fair market valuation, with Tinkoff receiving an adequate premium. Both banks will retain their licenses, brands, teams, and customer service standards. Potanin anticipates improved customer service and increased market value through the combined competencies of both banks. Rosbank's expertise in corporate and private client services, international banking experience, and top reliability rating among Russian banks complement Tinkoff's innovative solutions, focus on technology, and large retail customer base. The TCS Holding board set the share placement price for Rosbank acquisition at 3423.62 rubles per share, planning to issue 130 million shares. Shareholders will make the final decision at an extraordinary general meeting on May 8. Interros acquired Rosbank from Societe Generale in April 2022 and purchased a 35% stake in Tinkoff from businessman Oleg Tinkov's family trust. Tinkoff's team leads the integration process, with CEO Stanislav Bliznyuk playing a pivotal role, as reported by "Коммерсантъ".