Vostochny Bank News and Shareholder Dispute

Vostochny Bank has been making headlines due to a shareholder dispute that has been ongoing for some time. The bank's largest shareholder, VTB, has been trying to acquire a controlling stake in the bank.

The dispute centers around VTB's attempts to increase its stake in Vostochny Bank, which has been met with resistance from other shareholders. This has led to a stalemate in the bank's operations and a decline in its stock price.

The bank's management has been trying to find a solution to the dispute, but so far, no agreement has been reached.

Vostochny Bank has been at the center of a corporate dispute between its top shareholders, Baring Vostok and businessman Artyom Avetisyan with his partners.

The dispute has finally been settled, with all claims in Russian and foreign courts set to be withdrawn.

Under the agreement, Vostochny Bank will receive 2.5 billion roubles ($31.72 million) from a Baring Vostok portfolio company, First Collection Bureau.

This amount is the same as the amount Calvey and his colleagues were accused of embezzling.

The shareholders of Vostochny Bank have finally settled their corporate dispute, bringing an end to a long-standing battle for control of the bank.

The agreement, reached between Baring Vostok and businessman Artyom Avetisyan with his partners, involves withdrawing all claims in Russian and foreign courts, a process that could take about two months.

The dispute has been closely tied to the Calvey case, with Calvey alleging that the struggle for control of the bank was behind the case against him and others.

The shareholders confirm that the corporate dispute between them has no connection to the criminal case, which is a major relief for Calvey.

Vostochny Bank, Russia's 39th biggest bank by assets, is set to receive 2.5 billion roubles ($31.72 million) from a Baring Vostok portfolio company, First Collection Bureau, the same amount Calvey and his colleagues were accused of embezzling.

The bank plans to back out of civil claims submitted as part of the criminal case after receiving the money, which could potentially help Calvey and his colleagues.

A Russian court has seized a significant stake in Vostochny Bank, a move that's likely to further escalate the ongoing dispute between the bank and private equity group Baring Vostok.

Baring Vostok held a 41.6% stake in Vostochny Bank before the seizure, which was ordered at the bank's own request.

Vostochny Bank had requested the seizure of over 334 billion shares held by a firm controlled by Baring Vostok, citing concerns that the group might sell shares before a court decision.

Baring Vostok, which has been in the spotlight since the arrest of its executives, including U.S. investor Michael Calvey, on embezzlement charges, plans to appeal the decision.

The case against Calvey and other Baring Vostok executives has already sent shockwaves through the Russian investment community and soured the business climate in the country.

The seizure of the stake has effectively reduced Baring Vostok's control over Vostochny Bank, which had previously lost its majority shareholder status in June.

Baring Vostok had ceded a 9.99% stake in Vostochny Bank in June, marking a significant shift in the balance of power between the two parties.

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A court in Russia's Far East has ordered the seizure of a stake in Vostochny Bank held by Baring Vostok. This decision was made at Vostochny Bank's own request.

Vostochny Bank had requested the seizure of over 334 billion shares held by a firm controlled by Baring Vostok. This move was necessary to prevent Baring Vostok from selling shares in Vostochny Bank before a court decision.

Baring Vostok holds a 41.6% stake in Vostochny Bank, having ceded a 9.99% stake in June.

Vostochny Bank has a complex history, to say the least. In 2010, it purchased Consumer Bank, a Russian subsidiary of Banco Santander, and Morgan Stanley's City Mortgage Bank.

The bank underwent significant changes in 2015, reducing its workforce by half and laying off 4,000 employees. This was a major restructuring effort.

In 2016, Vostochny Bank merged with Uniastrum Bank, a move that led to a significant shift in ownership. At that time, Artem Avetisyan acquired a 32% stake in Vostochny Bank via his Finvision Holdings.

A dispute arose between the major shareholders, Baring Vostok Capital Partners and Finvision Holdings, over a call option for a 9.9% stake in the bank. This dispute went to court.

The London Court of International Arbitration (LCIA) ultimately ruled in favor of Finvision Holdings, ordering Evision Holdings to execute the option and sell the shares. This decision was made in 2019.

Baring Vostok eventually executed the option in mid-2020, resulting in Finvision Holdings gaining control over 42.01% of the bank. This marked a significant change in the bank's ownership structure.

In October 2020, Vostochny Bank's shareholders signed a settlement agreement, in which Baring Vostok refunded 2.5 billion rubles to the bank. This was a major development in the bank's history.

Bank Stake Sales are a significant aspect of Vostochny Bank's operations, with the bank selling a 7.58% stake to the Russian Direct Investment Fund (RDIF) in 2013.

This sale was a strategic move to increase the bank's capital and improve its financial stability.

The RDIF's investment in Vostochny Bank helped the bank to strengthen its balance sheet and increase its lending capacity.

As a result, the bank was able to expand its operations and increase its market share in the Russian banking sector.

The sale of bank stakes is a common practice in the banking industry, and Vostochny Bank's experience is a prime example of how such transactions can benefit the bank and its investors.

The RDIF's investment in Vostochny Bank was a successful one, with the fund reportedly earning a significant return on its investment.

By selling a stake in the bank, Vostochny Bank was able to tap into the RDIF's expertise and resources, which helped the bank to improve its performance and increase its competitiveness.

The bank's decision to sell a stake to the RDIF was likely influenced by the fund's track record of successful investments in the Russian economy.

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