Promsvyazbank announces closing of Pervobank's acquisition in a deal that gives PSB's majority shareholder, Promsvyaz Capital B.V., control of 86.54% shares of Pervobank. Pervobank's shareholders received 4.54% of PSB's shares. The transaction has been approved by the Bank of Russia and the Federal Antimonopoly Service. Promsvyaz Capital B.V will make a mandatory offer for the remaining shares held by Pervobank's minority shareholders.

Pervobank's merger into Promsvyazbank will take place in 2016 and as a result, clients of the combined bank will have access to an even larger range of products and higher quality services and an expanded geographic network of branches and ATMs.

'The Samara Region has become a key region for Promsvyazbank and we intend to further consolidate our position here,' said Artem Konstandian, Chairman of Promsvyazbank's Management Board, commenting on the deal. 'The bank's updated development strategy sets out our goal of becoming the second largest bank in the Volga Region by business volume and the first-choice bank for families and entrepreneurs. We will also expand cooperation with the regional authorities, contributing to the overall development of the Samara Region.

The deal showcases the opportunities and prospects afforded by a 'classic' merger of banks through share exchange in the Russian market; it will help further consolidate PSB's shareholding structure and increase the liquidity of the bank's traded shares.'

Pervobank will become the second bank in the Volga Region to be merged into Promsvyazbank in the recent period: earlier, PSB Banking Group acquired the Togliatti-based Avtovazbank (AVB), for which resolution proceedings had been announced last July. Promsvyazbank's loan portfolio is expected to grow by RUB 31 bn post integration, with deposit volumes increased by RUB 62 bn, and the client base expanded by almost 177,000 clients.

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