BELARUS NEWS AND ANALYSIS

DATE:

26/02/2009

RSHB may acquire controlling stake in Belagroprombank

MINSK. Feb 26 (Interfax) - Belarus is prepared to sell up to 20% of shares in Belagroprombank to Russian Rosselkhozbank (RSHB) (RTS: RSHB) initially and up to 50% subsequently.

"The bank along with the government and the presidential administration are ready to examine Rosselkhozbank's participation as a shareholder in Belagroprombank," the CEO of the Belarusian bank, Sergei Rumas, said at a press conference in Minsk on Thursday.

Rumas said the bank might sell RSHB 10%-20% of shares.

The negotiating process has not begun yet and RSHB has not officially applied to purchase shares in the bank. "But in principle there is potential interest from their side," he said. If official negotiations began, the Belarusian side would consider an option for RSHB to subsequently raise its stake to controlling, he said.

As the head of the bank, Rumas said he would like to see RSHB become a shareholder. "In principle we would like to see RSHB take a stake. Many banks are working to attract strategic investors," he said. "RSHB is a kindred bank and a very large one even by Russian standards," he said.

The sale might be discussed in Minsk on March 12-13 during the official opening of the Russian bank's representation there.

The two banks have solid partnership relations. Belagroprombank has a $100 million credit line from RSHB. "Only parent banks give their Belarusian subsidiaries limits like that," he said. "A large part of the limit has already been utilized and RSHB is ready to consider the possibility of increasing it," he said.

Belagroprombank was the 45th biggest bank by assets in the CIS and the second biggest in Belarus on the Interfax 1000: CIS Banks list as of the end of the first half of 2008.

RSHB was the fourth biggest Russian bank by assets according to the Interfax-100 list as of the end of 2008.

Source:

http://www.interfax.com/3/474978/news.aspx

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