S. Africa's Standard Bank to Buy into Russia's Investment Bank

飞雪寒冰

South Africa's Standard Bank, of which Industrial and Commercial Bank of China holds a 20 percent stake, said it is buying shares of Russia's largest private investment bank Troika Dialog Group.

Standard Bank said on Oct 12 that the 33 percent stake will be purchased at US$200 million in the form of convertible loans. Standard, Africa's largest bank, will also merge its Russian operations with Troika Dialog.

The partnership is intended to create a trading platform across emerging markets by bringing the two partners' expertise in institutional banking and financial consulting, said Andrei Sharonov, managing director and head of investment banking at Troika Dialog.

"China's biggest attraction to Russia is capital. Many metals and petroleum companies in Russia are seeking Chinese investors," Sharonov said.

ICBC, as Standard's shareholder, will provide business opportunities for development in China, Africa and Latin America, Sharonov added.

飞雪寒冰

ICBC bought 20 percent of Standard for US$5.5 billion in March 2008.

The deal is awaiting regulatory approval from the Russian central bank, a Russian anti-monopoly agency and South African banking regulators.

Looking forward, Sharonov said he hopes the bank, ICBC and Troika Dialog can seize opportunities at the upcoming Sino-Russian economic forum on Oct. 13, with participating enterprises expected to sign business deals worth up to US$5.5 billion.