VTB Bank (public joint-stock company) (LSE:VTBR) signed a memorandum to acquire unknown majority stake in Public joint-stock company Vozrozhdenie Bank (MISX:VZRZ) from a group of shareholders on August 14, 2018. Under the agreement, VTB intends to buy a controlling stake of at least 75% stake in Vozrozhdenie Bank. Gennady Soldatenkov, currently a member of VTB Bank Management Board, will be appointed the Chairman of Vozrozhdenie Bank's Management Board.

The current Chairman of Vozrozhdenie Bank's Management Board Mark Nakhmanovich will continue as the Deputy Chairman of the Board of Directors. Vozrozhdenie Bank's team, with its extensive experience in Moscow and other regions of operation, will also remain at the bank. The transaction is subject to customary closing conditions, including regulatory approvals and VTB's internal corporate procedures regarding the transaction are completed.

As on August 17, 2018, VTB informed it will buy Vozrozhdenie Bank only if the asset is free from possible legal repercussions. High Court in London had again frozen shares in Vozrozhdenie under a new suit brought by holders of credit notes who had filed claims against the brothers Alexei and Dmitry Ananyev. Bonum Capital will arrange the transaction.

As on September 25, 2018, VTB's Supervisory Council has approved the acquisition. The transaction earlier received the approvals from the Bank of Russia and the Federal Antimonopoly Service. VTB will acquire at least 85% of Vozrozhdenie during the first phase of the deal.

VTB will further make a mandatory offer to all Vozrozhdenie Bank minority shareholders, who will be able to sell their shares until January 2019. Transaction is expected to be completed in September 2018. BGP Litigation acted as legal advisor to the sellers.

Michael Kyprianou & Co LLC and Alexei Roudiak, Oleg Konnov, Danil Guryanov, Justin Vaughan, Anna Sokolova, Olga Stepanova, Alexander Chuprunov, Evgeny Yuriev, Sergei Kolobov, Elena Manasyan, Olga Stepanova, Dmitry Mazurov and Yulia Turkina of Herbert Smith Freehills acted as legal advisors to Bonum Capital.