Russian Ministry of Finance Buys Controlling Stake in Sberbank

Today, Sberbank had made an announcement to its customers and shareholders. Notably, the closing of the acquisition of ordinary shares within the Public Joint-Stock Company, Sberbank of Russia. The purchase was made through the Russian Federation’s Ministry of Finance.

State-Sanctioned Acquisition

The controlling stake of Sberbank PJSC was acquired by Russia’s Ministry of Finance, having acquired it from the Central Bank of the Russian Federation. The share itself stands as 52.32% of the bank’s pool of voting shares as well as 50% of its authorized capital.

What’s important to note, is that one ordinary share of Sberbank has been left within the control of the Russian Central Bank. The purchase itself stands as part of a placement of funds of the National Wealth Fund of Russia.

The transaction itself was announced less than a month ago, after Vladimir Putin, the President of Russia, signed Federal Law No 50-FZ.  The Law itself was quite aptly named “On the Acquisition of Ordinary Shares in the Public Joint-Stock Company Sberbank of Russia by the Government of the Russian Federation from the Central Bank of the Russian Federation and the Invalidation of Certain Provisions of the Legislative Acts of the Russian Federation.

The Mandatory Public Statement

Herma Gref stands as the Chairman of Sberbank’s Executive Board, as well as the CEO of the firm as a whole, and gave a comment about the matter at large.  He first presented his thanks to the Central Bank of Russie, due to its contribution to Sberbank’s development in the time where it was the largest shareholder.

He further gave a warm welcome to Sberbank’s new majority shareholder, the National Wealth Fund of Russia, which in turn is represented through the Ministry of Finance of Russia.

Gref went as far as to say the entire nation of Russia stands as a shareholder in Sberbank, due to the National Wealth Fund’s acquisition. Thus, Gref stated that Russia’s people would be the primary beneficiary of this operation.

Plans For The Future

Gref gave his assurances that both he and Sberbank’s team of top executives will strive to ensure the bank’s strategy will be fulfilled. Sberbank itself has aimed at making strides in technological leadership, profit growth, ecosystem development, as well as advanced customer services.

The move itself is significant and stands to have a tremendous impact on the way Sberbank operates. With any luck, this will be a good thing for both the Russian people and Sberbank itself.

Find The Source Here.

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