Russia-China fund, Middle East investors eye stake in Sovcombank
BEIJING, June 8 (Reuters) - Russia-China Investment Fund, established by Russian sovereign fund RDIF and China Investment Corp., said on Friday it planned to invest in Russian lender Sovcombank jointly with a consortium of leading Middle Eastern funds.
The term sheet, signed during President Vladimir Putin's visit to Beijing, sets out plans for the consortium to acquire a minority stake in Sovcombank.
The investors are set to buy new shares and none of the existing shareholders plan to sell their holdings, Sergey Khotimskiy, a shareholder and first deputy chief executive of the bank, told Reuters via the press office. He did not disclose the value of the deal or the size of the stake.
A source close to the deal told Reuters the funds planed to invest around $100 million in the bank.
Sovcombank in turn will invest in expanding its business in Russia and plans an initial public offering in the next three years, RDIF said in a statement. Sovcombank, among Russia’s top 15 lenders by assets, is controlled by brothers Sergey and Dmitry Khotimskiy, who own a combined 38 percent stake, according to the bank’s documents. (Reporting by Denis Pinchuk and Polina Nikolskaya; Editing by Maria Kiselyova and Mark Potter)