02.07.10. Novikombank acquires 100% stake in Lada-Credit Bank from JSC AVTOVAZ
On July 2, 2010 Novikombank finalized the deal to acquire a 100% stake in Lada-Credit Bank from JSC AVTOVAZ.
Lada-Credit Bank has been sold according to the government-approved restructuring programme of JSC AVTOVAZ aimed at cost cutting and optimizing company assets. Novikombank’s purchase of Lada-Credit will raise the scope of financial services offered to AVTOVAZ. As a result, vehicle sales are expected to increase through expanded availability of car loans to the public and the financing of the company’s dealers and suppliers.
For Novikombank, its purchase of Lada-Credit is a crucial step towards expansion of its regional network which reflects the Bank’s development strategy for 2010–2014 set by the Bank’s Board of Directors. In addition, its integration with Lada-Credit will expand the Bank’s client base, promote the development of its product line and improve the Bank’s position in regional markets.
Commenting on the closing of the deal, Igor Komarov, JSC AVTOVAZ President, member of the Board of Directors of Novikombank, said: “Novikombank possesses the capital resources, experience and technologies required for further development of Lada-Credit Bank and its joint projects with AVTOVAZ. Thus, without any additional investment by AVTOVAZ, we have attained an important strategic objective: the deal will lead to a more effective financial policy through improved cooperation with our partner banks.”
Novikombank President Ilya Gubin stressed: “Realizing the goals set by Novikombank’s Board of Directors, we are keen to raise our growth rates, particularly in the range of services offered to our strategic clients in key regions. The purchase of Lada-Credit will help us raise the level of cooperation with JSC AVTOVAZ and ensure higher sales of banking products to the our partners including member companies of the Russian Technologies State Corporation, subsidiaries of other key clients of the Bank, and a wide range of customers all across Russia.”
For information purposes:
Novikombank was established in 1993. Today, it is a solid, rapidly growing financial institution offering a comprehensive range of banking services to its customers. The provision of finance to Russian industrial companies, including heavy-machinery, the automotive industry and technology-intensive manufacturers is among the Bank’s priorities. As of 1 April 2010, the Bank’s capital amounts to 5,9 billion roubles, with net assets of 42 billion roubles.
