OREANDA-NEWS. July 15, 2013. Sberbank of Russia, Standard Bank and the Troika Dialog Partnership have agreed on preschedule settlements for the acquisition of 100% of Troika Dialog.

As part of the second stage of the deal, Standard Bank and the Troika Dialog Partnership, who are the selling shareholders, will receive additional compensation in the amount of USD 400 mln: USD 350 mln will be paid after the signing of the agreement and the remaining USD 50 mln will be paid depending on the successful completion of the integration and the achievement of the net profit target for 2013.

The terms of the settlement were approved by all parties and were disclosed to the Supervisory Board of Sberbank. The preschedule payments for the deal will allow for a quickening of the pace of the integration processes and for the focus to be placed on the further development of the business. The financial result of the preschedule payments for the deal has been largely incorporated into the previously announced 2013 earnings forecast for the Sberbank Group.

Herman Gref, CEO, Chairman of the Board of Sberbank of Russia, emphasized: “The creation of Sberbank CIB, Sberbank Asset Management and Sberbank Private Banking aligns with the long-term development strategy of Sberbank, which is aimed at providing integrated service to our clients. The results of the first year for the joint business demonstrated the correctness of the chosen integration model as well as the high return on invested capital.”

Ruben Vardanian, Co-head of Sberbank CIB, commented: “I support this decision which will allow us to accelerate the formation of a unified corporate and investment banking block as well as the asset management and private banking businesses. Extensive possibilities are opening up before us and I am confident in the business model we are building.”

Sberbank’s acquisition of Troika Dialog was announced on March 11, 2011, and the deal was closed on January 23, 2012. Under the stated terms, the deal was to be completed in two stages. During the first stage, Sberbank of Russia acquired a 100% stake in Troika Dialog from Standard bank (36.427%) and Troika Dialog Partnership (63.573%) at a cost of USD 1 bln. The second stage provided for additional compensation for the Partnership and Standard Bank according to the results achieved by the company during the three-year period of 2011-2013.