Russia: Sale of Shares of the Asian-Pacific Bank

Russia will hold an open auction for the sale of shares of the Asian-Pacific Bank (ATB) in March 2019. This is stated in the press service of the regulator.

The Bank of Russia, which sanitized ATB through the Banking Sector Consolidation Fund (FCBS), stated that the financial condition of the bank was stabilized, new capital was formed, the outflow of customer funds was stopped, solvency was restored and stable profitability was ensured.

According  to Russian media, Given the positive dynamics, the Central Bank decided to sell the shares of ATB, almost 100 percent owned by the regulator, at an open electronic auction with a decrease in the starting sale price. The auction is scheduled for March 14, 2019, it will be held on the trading floor “Sberbank-AST“, said in a statement.

The initial sale price of the bank will be 9.857 billion rubles, the minimum purchase price is 6 billion rubles.

ATB was reinstated by the Federal Financial and Security Service in April 2018, while the moratorium on meeting creditors’ claims was not announced, the bank continues to work. The Bank of Russia indicated that, prior to the reorganization at the ATB offices, clients were sold bills of a related structure, this took the form of a financial pyramid.

At the end of 2016, the license of ATB’s subsidiary M2M Private Bank was revoked. After the regulator ordered the ATB to bezostozat until 2018 reserves of almost 9 billion rubles. For the whole of 2017, the bank was able to add reserves for 75 percent of this amount, and in the annual accounts, doubts were expressed about its continuous operations.

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