OREANDA-NEWS. November 11, 2009. Investment firm Siguler Guff & Company (SG) announced the closing of a transaction with Avindale Investments S.A. owned by SM.group for the acquisition of a minority stake in OJSC “MDM Bank” of approximately 3.3%, through its investment arm, Russia Partners.

Brunel Capital, a London-based boutique advisory and M&A firm, has brokered the deal and acted as a financial adviser.

"We are pleased to be associated with MDM Bank and find this opportunity attractive because the bank is widely considered to be the best private sector bank in Russia", said SG’s founder and managing partner Drew Guff. "We followed the bank’s progress for many years, watched its development. We firmly believe it is the best private bank in Russia with quality management and shareholders group".

Vladimir Andrienko, head of Russia Partners, said: "Our investment team has conducted detailed due diligence of the bank, the results of which confirmed its investment attractiveness. In our view, the good prospects of the bank are determined by its strong management team with vast experience in the banking sector, development strategy aimed at sustainable growth, and commitment to top levels of international corporate governance standards".

"We welcome SG as new investor in MDM Bank. Participation of long-term partners able to bring not only new equity but also international sector experience will positively affect implementation of the bank’s development strategy", - said Igor Kim, CEO of MDM Bank.

Oleg Kirillov, President of SM.group, said that having completed this sale, SM.group has exited from its investment in the Russian banking sector, which it entered in 2004. “MDM Bank has very strong prospects for further growth and development. The bank has strong management team, led by Igor Kim, with whom we have successfully completed several projects. We have decided to exit from this investment to concentrate our efforts and resources on projects in the field of venture technologies and innovation."