By Marcus Williams
State-controlled VTB Bank has exercised a call option to acquire 31.5 % of property developer Sistema-Hals from the diversified conglomerate group Sistema for a symbolic price of just 30 roubles.
Sistema-Hals and its parent have been heavily indebted to VTB, and agreed earlier this year to give VTB a 19.5% stake and a call option for a further 31.5%. In return, Sistema no longer holds any liability for the loans that Sistema-Hals took from VTB.
Under the terms of their agreement the partners intend to restructure the debt of Sistema-Hals to VTB. The partners have also agreed the terms governing the implementation of a number of joint investment projects.
Leonid Melamed, president and chief executive of Sistema, said in a statement: “Our strategic partnership with VTB Bank provides a platform for a productive development of Sistema-Hals and the increase of its asset value. We continue to see great potential in the Russian real estate sector and will participate in the management of Sistema-Hals as we remain one of the key shareholders.”
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