Tinkoff board of directors will invite shareholders to consider integration with Rosbank

The group’s message, dedicated to the 2023 report, states that “TKS Holding plans to use the additional issuance of its shares as the main source of financing for the transaction.”

The share purchases will be made until the end of 2024 “or until the specified maximum number of shares purchased is reached,” Tinkoff said. Shares can be purchased both on the Moscow Stock Exchange and on the over-the-counter market.

According to the chairman of the board of directors Alexey Malinovsky, the integration will allow Tinkoff to strengthen its position in the financial market and enter the top 5 in terms of household fund balance and total capital of the banking group and in the top 4 in terms of the size of the loan portfolio.

Both Tinkoff and Rosbank are systemically important and comparable in size. Rosbank ranks 11th in terms of assets (2.14 trillion rubles as of February 1) and 14th in terms of capital (233.9 billion rubles). Tinkoff ranks 12th in terms of assets (2.13 trillion rubles) and 13th in terms of capital (242.8 billion rubles).

If the deal goes through, a large private player could appear on the market with assets of about 4 trillion rubles and a capital of more than 380 billion rubles, Frank Media estimates.

Vladimir Potanin’s Interros acquired Rosbank and the group’s insurers of the French financial conglomerate Societe Generale in 2022. In the same 2022, Interros became the owner of a 35% stake in TCS Group (shareholder of Tinkoff Bank), buying a part of the family trust of Oleg Tinkov’s family.

Both banks were subject to Western sanctions: Rosbank came under US blocking restrictions in December 2022, Tinkoff in July 2023.