Expobank Acquires Russian Subsidiary of WestLB

Russian mid-sized Expobank signed an agreement to buy the Russian subsidiary of Germany’s WestLB AG financial group, Expobank said in a statement on Monday.

Expobank, a former subsidiary of U.K. Barclays Bank Plc in Russia, plans to close the deal to buy WestLB Vostok in the fourth quarter of 2012.

“WestLB Vostok’s purchase is a considerable step for the successful expansion of the banking business. International experience and the impeccable reputation of WestLB Vostok on the market are important for us,” Expobank Board Chairman Igor Kim was quoted in the statement as saying.

WestLB Vostok has been acting in Russia as a commercial bank since 1995. As of the end of 2011, the bank’s assets exceeded 50 billion rubles ($1.52 billion) and net profit to IFRS amounted to 600 million rubles ($18.3 million).

Barclays Plc, the UK’s third largest bank, bought 100 percent of Expobank for $745 million in 2008, paying about four times the book value for the Russian bank. The British bank sold its subsidiary to Igor Kim in October 2011 due to losses.


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