| Fri 6 Mar 2009, 7:06 | | SBK - Standard Bank Enters Into A Strategic Partnership With A Leading Russian |
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SBK
SBK
SBK - Standard Bank Enters Into A Strategic Partnership With A Leading Russian
investment bank
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/017128/06)
JSE share code: SBK
NSX share code: SNB
ISIN: ZAE000109815
("Standard Bank")
Standard Bank enters into a strategic partnership with a leading Russian
investment bank
Standard Bank is entering into a strategic partnership with Troika Dialog Group
Limited ("Troika Dialog"), the most established and largest independent
investment bank in Russia, in terms of which Standard Bank intends, subject to
regulatory approvals, becoming a 33% shareholder in Troika Dialog.
The deal will initially comprise a US$200 million convertible loan extended by
Standard Bank`s International Operations to the Troika Dialog Group. Subject to
the required regulatory approval process, this loan, together with the
acquisition by Troika Dialog of Standard Bank`s existing operation in Russia,
ZAO Standard Bank, is convertible into a 33% equity stake in the merged entity.
The combined operation will have a capital base in excess of US$850 million and
will be strongly positioned to compete in the Russian financial services sector
and to pursue banking consolidation opportunities in Russia.
The transaction is subject to the approval of the Central Bank of the Russian
Federation and the Russian antitrust authorities and the South African Registrar
of Banks.
Troika Dialog is a brokerage and investment bank that operates across the
Commonwealth of Independent States ("CIS"). It has consistently demonstrated
market strength in its core lines of business, namely capital markets (stock
broking), investment banking, asset management, private equity investments and
personal investments and finance. It is primarily focused on Russia and other
CIS markets.
Russia is the third largest economy amongst global emerging markets and has
considerable resource wealth. This presents a strong fit with Standard Bank, a
leading emerging market banking group with a strong resource banking franchise.
The investment is aligned with Standard Bank`s strategy to expand its
international networks and capabilities and, where appropriate, to find the
right partners to support the expansion of these networks. This transaction
enables Standard Bank to have an enhanced access to this large emerging economy,
along with a close alliance with a leading Russian company.
In order to give effect to the strategic partnership, Standard Bank and Troika
Dialog plan to enter into a relationship agreement which will govern the ongoing
shareholder relationship and commercial cooperation between the two groups.
Standard Bank would also have the right to nominate two non-executive members of
the Troika Dialog board of directors.
A Standard Bank / Troika Dialog Joint Strategic Committee will be established
and will meet regularly. This committee will have equal representation from both
parties. The strategic cooperation between Standard Bank and Troika Dialog is
expected to cover broad areas of cooperation in Russia and other international
locations.
Johannesburg
6 March 2009
Investment Bank and Sponsor
Standard Bank
Date: 06/03/2009 07:06:03 Produced by the JSE SENS Department.
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