OREANDA-NEWS. The shareholders of B&N Bank, Mikail Shishkhanov and Mikhail Gutseriev, have entered into an agreement to acquire a controlling shareholding (58.33%) in MDM Bank from Sergei Popov. Within the framework of the transaction, 100% of the shares of MDM Bank have been valued by the parties at approximately the level of the bank's equity.

Mikail Shishkhanov, who is currently President and Chairman of the Management Board of B&N Bank, will become Chairman of the Management Board of MDM Bank. Simultaneously, current First Vice President of B&N Bank, Alexander Lukin, will take up the position of President of B&N Bank.

"The acquisition of MDM Bank is a significant step towards our strategic goal of becoming one of the largest private banks in the country. From the moment the deal is concluded, we guarantee the fulfilment of all obligations to the clients and partners of MDM Bank. The transaction will be completed within the next three months. By the end of 2015, we will approve plans for the further strategic development of MDM Bank as part of our banking group. Operational integration of the banks will take place over the next two to three years," noted Mikail Shishkhanov, President and Chairman of the Management Board of B&N Bank.

"The Board of Directors of MDM Bank is confident that consolidation of the banks in the current Russian financial market environment is strategically the correct decision both for the banks' shareholders and customers, and is in their interests. The merger of MDM Bank and B&N Bank will lead to the creation of a bank with significant financial resources and a favourable competitive position on the Russian market. The integrated bank will be a major financial institution with profound expertise and experience in the banking business, and its strong financial standing and position on the market will enable it to provide first-class services to all customers - from major corporates to small businesses and retail clients," commented MDM Bank Chairman of the Board of Directors Oleg Vyugin.