OREANDA-NEWS  On 19 December BANK URALSIB (URALSIB or Bank) (RTS: USBN) announced results of the Extraordinary General Meeting of Shareholders (EGM) called by absentee vote.

December 15, 2008, was a closing date for absentee voter bulletins submission in the framework of Extraordinary General Meeting of Shareholders. The EGM considered the issue of the Bank's authorized capital increase as well as other current activities issues, which should be approved by the shareholders of the Bank.

The Bank's shareholders made a decision to increase URALSIB's authorized capital by 6.161 bln rubles by placing additional ordinary non-documentary shares of the Bank. The nominal value of the share is 0.1 ruble. 61.6 bln of shares will be placed by private subscription among current shareholders - JSC "UralSib Business Center" and OJSC "Financial Corporation URALSIB".

The additional shares may be paid in monetary assets in the currency of the RF or in kind1. Should the placed shares be paid in kind, the shareholders approved an independent evaluator for the purpose of real estate market value evaluation - JSC "Rossiyskaya Ocenka".

The Bank's Extraordinary General Meeting of Shareholders also approved a barter transaction, in accordance with which URALSIB passes 46.9 bln of the Bank's shares (76.1% of the additional issue) to JSC "UralSib Business Center" and in exchange obtains nonresidential administrative building, owned by JSC "UralSib Business Center" as a property. The price of the building, located in Efremov st. 8, Moscow, is 4.690 bln rubles.

The shareholders also approved the purchase and sale transaction between the Bank and OJSC "Financial Corporation URALSIB" providing for the purchase by OJSC "Financial Corporation URALSIB" of 14.0 bln of URALSIB's ordinary registered non-documentary shares (22.7% of the additional issue) at the amount of 1.4 bln rubles. The shares will be paid in monetary assets in the RF currency.

The shareholders, who voted against or did not participate in the voting on the placement of the Bank's shares by private subscription, have a priority right to purchase additional shares in the amount proportional to the quantity of the Bank's shares owned by them, at the nominal price.

As a result of the additional issue the Bank's authorized capital may rise by 30.2% (or by 6.2 bln rubles) up to 26.6 bln rubles. The process of additional issue is planned to be completed in IIQ2009.

The Bank undertakes some steps in regards to Tier 1 and Tier 2 capital growth. Particularly, in the beginning of December the CBR registered a subordinated deposit of 6 bln rubles with the maturity of 10 years from Russian investors, thus BANK URALSIB increased its capital to 48.8 bln rubles (by 20% up y-t-d). Besides, according to the acting legislation2 the Bank considers the possibility of securing 6 bln rubles long-term subordinated loan from the Bank for Development and Foreign Economic Affairs.

The Bank's authorized capital amounts to 20.4 bln rubles and is divided by 204.2 bln shares with the nominal value of 0.1 rubles. At present all companies of the Financial Corporation URALSIB own 94.6% of the Bank's authorized capital, Deutsche Bank - 2.1%, Morgan Stanley - 2.1%, free float - 1.2%.