OREANDA-NEWS. On February 04, 2007 shareholders of JSCB "PRAVEX-BANK" (PRAVEX) signed agreement about sale of Bank's 100% holding of shares to Intesa Sanpaolo (ISP), reported the press-centre of PRAVEX-BANK.

As a result of transaction PRAVEX is one of the biggest Ukrainian banks — with support of its new strategic partners will be able to strengthen its position at consumer crediting market and retail banking services.

Completion of transaction is expected during the nearest months after receiving of all necessary permissions on behalf of regulating authority of Italy and Ukraine.

At the moment of bargain completion ISP will pay USD 750 m. (UAH~3,8 b), which correspond to coefficient more of than 6,5 capital (this is capital as of 30.06.07 according to International Accounting Standard (IAS)). Total price of bargain will comprise price updating (dollar per dollar) on the basis of calculated net assets of Pravex at the moment of bargain completion. This coefficient reflects unique indexes of PRAVEX as commercial bank, directed towards business of retail clients via its network, which is 6 by its volume in Ukraine (more than 560 outlets), and also via more than 2000 points of sales of consumer credits in the biggest network of retail trade.
Bank's advisors on bargain were leading investment banks Rothschild and KBC Securities Baltic Investment Company, and also Baker&Mckenzie — legal advisors.

As a result of its purchase ISP keeps performing its strategy in countries of Central and Eastern Europe, having increased clients' quantity from 7,2 to 8,4 m.

Ukraine is strategic market for ISP group, which aims to invest significant means into development of PRAVEX-BANK to strengthen its leading positions at Ukrainian market. As a result of bargain, clients and employees of PRAVEX-BANK will be able to feel all the privileges from usage of resource base, know how and considerable experience of work of one of world banking market leaders.

Additional information about PRAVEX-BANK and ISP.

PRAVEX-BANK
PRAVEX-BANK was founded in 1992. Since 1996, the Bank has been undertaking audit with four leading international auditing companies. In 2004-2006, as well as for the first half year of 2007, "Deloitte & Touche" transnational auditing company carried out international audit of the Bank.

The Bank's structure is made of more than 565 outlets and 2020 consumer crediting points. Acquiring network is represented by 4200 points. The Bank serves 67 000 legal entities and about 3,7 m. individuals. Every month PRAVEX-BANK transfers more than 1 m. of accepted cash payments amounting to more than UAH 400 m. Since November 1999 the Bank is a principal member of MasterCard Incorporated International Payment system, and since June 2001 of  Visa International, since December 2000 the Bank is a direct agent of American Express company. Since 2002 the Bank is a direct agent of Western Union system of direct money transfers (works with 7 banks-subagents), since 2005 — of MoneyGram system, and since 2007 — of UNIStream system.

In 1998 the Bank was the first to begin transactions with banking metals in Ukraine. Since this date till the present moment, PRAVEX-BANK sold to Ukrainian clients more than 33 tons of banking metals. Since 2007 PRAVEX-BANK introduced a new service — selling of precious coins from different countries of the world. The total amount of imported coins constitutes 4000 pieces, while the range is represented by 200 different types of coins from the greatest mints all over the world. PRAVEX-BANK has been assigned ratings from International rating agencies — Moody's — В2/А3.ua ("Stable" forecast), Fitch — B-/BBB(ukr) ("Stable" forecast).

The Bank is a constant member of three market leaders of consumer crediting with clients' active base of about 1,2 m. PRAVEX-BANK is characterized by the fact that crediting portfolio financing is done by means of solid deposit base. In accordance with PRAVEX-BANK's IAS financial statements as of 30/06/2007 bank assets constituted more than USD 1 b., crediting portfolio — USD 587m., deposit portfolio -  USD 592 mn, and bank capital amounted to USD 113,5 m. As of December 2007 Bank's assets in accordance with Ukrainian accounting standards constituted about USD 1,2 b, while the Bank's crediting portfolio and capital amounted to USD 764 m and 143 m accordingly.

ISP
with market capitalization about EUR 60 b. is the third leading banking group in Euro zone on volume of market capitalization, and also leading banking group of Italy of credit and deposit portfolio with market share about 19%.

In countries of Central and Eastern Europe ISP group is represented by banks: Privedna banka Zagreb(PBZ) (second biggest bank in Croatia), Vseobecna Uverova Banka (VUB) (second biggest bank in Slovakia), Banka Intesa Belgrade  (BIB) the biggest bank in Serbia), Central European International Bank (CIB) (second biggest in bank of Hungary),  Upi Banka (fifth biggest bank in Bosnia and Herzegovina), American Bank of Albania (АBA) (second biggest bank in Albania), Banka Koper (seventh biggest bank in Slovenia).

ISP also owns and operates Sanpaolo Bank Romania and KMB — bank Moscow which are two specialized banks in the sector of retail banking services outside Central and Eastern Europe countries. ISP is the owner of Вank of Aleksandriya (BOA) (sixth biggest bank of Egypt), as well as is in the process of completing acquiring 20 % of shares in Chinese QINGdao City Commercial bank.