(July 17, 2008) (LAWFUEL) – Global law firm Squire, Sanders & Dempsey L.L.P. acted as legal adviser to Russia’s OJSC Investtradebank (ITB) in an agreement to sell 19.99 percent of its shares to Starr International Company, Inc. (a nonregulated private investment company incorporated in Panama, with approximately $US20 billion in assets worldwide) and 19.99 percent of its shares to funds advised by J.C. Flowers & Co. (a US-based investment firm focusing on the financial services sector) and FPK Capital (a leading global specialist investment bank). Deloitte Corporate Finance Advisory acted as exclusive financial adviser to ITB.
The capital and significant financial services experience offered by the international investors will enable ITB to achieve its strategic objectives and enhance its position as one of Russia’s leading banks. After transaction closing and new share issuance, ITB’s total equity will amount to approximately RUB 8 billion. The transaction, which is subject to regulatory approvals and is expected to close within three months, will result in ITB joining Russia’s top 35 banks in terms of total equity.
ITB is a rapidly developing universal bank with a diversified client base from different sectors of the economy. Profile magazine recently rated ITB as one of the most reliable Russian banks, and the bank ranks 19th in RBC’s ratings of the best banks in Russia in rouble deposit business.
Partner David M. Wack led the Squire Sanders team, along with senior associate Patrick J. Brooks and associate Anna E. Manyatkina. “Our team is increasingly active in the Russian banking sector,” said Wack. “Despite the global economic slowdown, Russia remains vibrant in comparison with some of the world’s main financial centers, so this is a good place to be right now. The banking sector continues to diversify and become more sophisticated as international investment pours into the country,” he said.
The team recently advised on another significant banking deal involving the purchase of a 7.93 percent stake in URSA Bank, one of the largest, most successful and fastest growing banks in Russia, by The Russia New Growth Fund and a related co-investment fund (both managed by an affiliate of Troika Capital Partners). Squire Sanders advised the funds.
Squire Sanders Moscow lawyers are consistently recognized by independent surveys across a range of jurisdictions including banking and capital markets, corporate/mergers and acquisitions, private equity and energy.
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