Sovcombank allowed to buy HKF-Bank – Kommersant

Sovcombank received permission from the Bank of Russia and the Federal Antimonopoly Service to purchase HKF-Bank. Technically, the deal will be closed after registering an additional issue of Sovcombank to pay for the deal, the press service of the credit institution reported. After the purchase, Sovcombank will rebrand HKF Bank.

“Sovcombank on Friday, March 29, 2024, received permission from the Bank of Russia to acquire Home Bank, a leader in commodity lending in Russia. Also, the corresponding permission was previously received from the FAS,”— reported buyer bank.

Technically, the deal will be closed after registering an additional issue to pay for the purchase. First, the bank will buy 51% of the shares of HKF Bank through the issue of new shares of Sovcombank in the amount of 5% of the authorized capital. These shares will be transferred to the selling shareholders of HCF. They will not be listed on the stock exchange. At the second stage, Sovcombank will buy 49% of the shares of HKF Bank in installments over 2024–2025.

Sovcombank wants to direct the strategic focus of the merger to maintaining and scaling HCF Bank’s expertise in commodity lending, maintaining and growing its client base, and synergy between the two banks. As a result, the number of active retail clients of Sovcombank should increase by 50% to 9 million, and retail and deposit portfolios by 25% and 20%.

Read more about the deal in Kommersant’s article “Merger under sanctions“

Anastasia Larina