The Austrian banking group announced plans to take 100% control of Impexbank in early February after signing an agreement in Vienna.
Jeffrey Millikan, regional director for Russia, Ukraine and Belarus, said Raiffeisen would try to finalize the deal by May 1, but at the latest by May 15. The deal must first be approved by the Central Bank, as well as Russian and Austrian regulatory authorities.
Raiffeisen also announced plans to take over one of the five largest banks in the central Asian republic of Kazakhstan, and said that talks were underway with each of these banks.
Millikan said Raiffeisen International already holds 8% of Kazakh bank TuranAlem, and has made several offers to buy acquire a controlling stake.
Millikan said that Impexbank had exceeded forecasts in 2005, so the first tranche of $500 mln for the purchase would be paid in full.
A second tranche of up to $50 mln to complete the acquisition will be contingent on 2006 financials. The $550-mln price tag on the deal is the maximum, but could be revised following a revaluation of real estate.
Impexbank was founded in 1993 and is owned by seven Russian companies. It deals mainly with individual, non-corporate clients. As of June 30, 2005, Impexbank's assets stood at 1.2 bln euros with a net profit of 9 mln euros.
Impexbank board chairman Pavel Lysenko said that after the deal, the bank's budget would be reviewed to meet new goals set by shareholders, as well as options for obtaining loans at favorable rates on world markets due to Raiffeisen's strong credit status.
Raiffeisen International is a major banking group controlling 16 subsidiary banks and leasing companies in central and eastern Europe. The group is a fully consolidated subsidiary structure of Raiffeisen Centralbank Osterreich, which holds 70% of its common shares with the other 30% of shares in free circulation.
