Oligarch brothers Ananyevs won't merge Promsvyazbank and Vozroshdenie

Oligarch brothers Ananyevs won't merge Promsvyazbank and Vozroshdenie
Dmitry and Aleksey Ananyev

Instead, they will create a digital bank based on Vozrozhdenie.

The majority owners of Promsvyazbank (PSB) and Vozrozhdenie bank, Aleksey and Dmitry Ananyev, have decided against the banks merger. According to the official version, the merger did not take place, as there was no quorum for the adoption of this decision at the recent extraordinary meeting of the shareholders. Instead, it was decided to consider alternative development of the banks, namely, the creation of a digital bank based on Vozrozhdenie – a high-tech solution, aimed at working on the Internet.

At the same time, according to Kommersant's sources, the cancellation of the merger could have occurred due to the poor quality of PSB assets, joining which will lead to a deterioration in the financial situation in the already merged bank. In early October, Moody’s indicated a high level of PSB’s distressed assets.

At the same time, Promsvyazbank’s official statement says the question of merger is not taken off the table, but postponed. Until then, PSB and Vozrozhdenie will continue to work with separate balances and accounts.

As for the emergence of a digital bank on their basis, there is already technical basis for this – both credit institutions have already switched to a unified operational and technological platform, while a smaller scale of Vozrozhdenie’s IT platform provides an opportunity for faster development and introduction of new technologies for servicing and subsequent replication, including to PSB clients.

According to the Central Bank, Promsvyaz Capital B.V. controlled by brothers Aleksey and Dmitry Ananyev owns 50.03% of PSB's shares. The remaining shares are distributed between the European Bank for Reconstruction and Development, Future NPF, Moscow Credit Bank, Safmar NPF, Doverie NPF, and a small part of minority shareholders.

For one, Promsvyaz Capital B.V. owns 50% of Vozrozhdenie’s shares; 2.38% of those belong to PSB, and the remaining shares belong to VektorInvest LLC, Wipasena Holding Ltd., MKB, Sankt-Peterburg bank, and also to individual minority shareholders.

Brothers Ananyevs took interest in Vozrozhdenie’s assets in the spring of 2015, however, it was not clear until mid-summer who buys and sells shares of the bank and for what purpose. The acquisition of a large stake was unable to get the regulator’s approval for a long time.

The oligarchs rank 3rd in Forbes' Most Successful Business Dynasties in 2017 with a total fortune of $2.7 billion.

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