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Support for sale and purchase of OJSC InvestCapitalBank shares by one of the world’s biggest financial groups.
OJSC InvestCapitalBank
OJSC InvestCapitalBank has operated on the banking services market of the Republic of Bashkortostan since 1993. According to the rating agencies, InvestCapitalBank is in 2nd position among the Republic’s independent banks and 25th position in terms of assets in the Ural region (Expert-Ural) and is among the TOP-100 consumer and TOP-300 best banks in Russia (RBK rating).
The Project:
Support for sale and purchase of OJSC InvestCapitalBank shares by one of the world’s biggest financial groups.
Project term:
July 2006 – October 2007
Project description:
The Vegas Lex Corporate Practice represented the interests of the Bank’s shareholders in the sale of shares to a strategic foreign investor, providing support for negotiations on attracting a strategic investment in the bank’s capital, developing a scheme for introducing the investor into the capital and the principles for joint management of the bank. In connection with the fact that the final structure of the transaction did not envisage simultaneous purchase of all the Bank’s shares, but rather gradual introduction of the investor into the capital, the Firm’s main task was to protect the interests of the sellers during the period between the investor’s entry into the Bank’s capital and its complete sale. The most difficult task was thus to reflect all the terms and conditions of the joint activities of the sellers and buyers during management of the Bank in the transition period, to ensure minimization of the effect exerted by possible disagreements between the parties on the Bank’s activities. Under the conditions of different corporate cultures, this task required that all the parameters of the co-operation be set out in detail in the contractual documentation.
Considering that the investor was backed by one of the world’s biggest financial groups, the negotiations on the transactions were subject to serious pressure on the part of the buyers. As a result of the buyers rejecting amendments to the contractual documentation to protect the sellers’ interests, the latter had no choice but to withdraw from the transaction. This rejection required additional efforts on the part of the Firm’s specialists to minimise the losses for the sellers’ interests caused by the withdrawal, because, at the time the negotiations were halted, a number of documents had already been signed.
With the assistance of Vegas Lex specialists, the withdrawal from the transaction involved minimum losses for the Client.
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