VTB deal with RWB pushed to Sept, bank's SPO parameters virtually unchanged

MOSCOW. Aug 28 (Interfax) - The timing of VTB's deal with the Wildberries-Russ Group (RWB) has been pushed back from August to September, but the parameters of the new share issue that the state bank is planning for it remain fundamentally the same, with the offering estimated at 300 billion-400 billion rubles, though likely closer to the lower end of this range, VTB first deputy CEO Dmitry Pyanov said.

"If we're talking about the strategic partnership with RWB, the time guidepost for the deal to buy a minority stake in WB Bank and fintech assets is September. We're not forcing it, understanding that the management and human resources of our partner are now directed toward solving problems related to emergency events," Pyanov said.

A number of large RWB logistics hubs in various regions of Russia have been damaged by drone attacks since July 18.

"If we're talking about the new share issue, its parameters have not been fundamentally reconsidered, the line-up of anchor investors remains. The new issue for the purposes of the acquisition will be carried out within the old range of 300 billion-400 billion rubles, closer to the lower boundary of the range," Pyanov said.

VTB and RWB, which includes Russia's leading online marketplace Wildberries, announced a strategic partnership in May, the first step in which will be for VTB to buy a 5% stake in RWB's subsidiary bank, with the possibility of increasing it in future. VTB plans to raise financing for the deal through an SPO.

The bank might place 6.292 billion shares at a price of 87 rubles each in a public offering. The placement price was approved at VTB's annual general meeting in late June. But VTB's share price fell to a new all-time low of 49.86 rubles this week amid the general market slump.

"We realize that the participation of retail investors will be modest due to the gap in share price," Pyanov said.