‘It’s possible that VEK’s proposal to buy UralTransBank’s shares was an attempt to consolidate the bank’s assets in order to sell the business to a large strategic investor later. UralTransBank has ten subsidiaries and thirty-five offices, which makes it a strong regional financial structure,’ says Finam Management’s Alexander Osin.

Ural Transport Bank’s Board of Directors suggested that the shareholders should accept VEK’s proposal to buy the bank’s ordinary registered uncertified shares.

On June 28, 2008, VEK sent an obligatory notification to Uraltransbank, proposing to buy the bank’s 109,447,465 ordinary registered uncertified shares for 6.61 RUR apiece. The bank must accept the proposal or come up with its terms within seventy days of receiving this notification.

This compulsory purchase procedure was guaranteed by Bank Severnaya Kazna.

‘Given the current problems on the financial market related to lending business, the inflation rate, and the fierce competition, the Russian banking sector might experience some dynamic consolidation trends in the near future,’ he notes.

‘This particular company might be acting on behalf of some third party, and their offer might mean that the bank will get some new large stockholders.’