VTB may use option to acquire majority of Sistema-Hals

Russian state-controlled bank VTB may exercise a call-option to buy a 31.5% stake in local real estate developer Sistema-Hals from Hals-Finance by the end of 2009, according to news website DW. The lender could exercise its option if Sistem-Hals parent company Sistema fails to repay a $2 bn loan by the end of the year.

In an interview with news agency Reuters, Sistema-Hals said this week that it is trying to sell its controlling stakes in four Ufa refineries in Russia and one retailer, in order to repay the credit facility. CEO Leonid Melamed said the four refineries in Russia together with retailer Bashkirnefteproduct are worth an estimated 41 billion roubles (EUR 940 mln).

Earlier this year Sistema signed an agreement with VTB to sell a stake of almost 20% in Sistema-Hals, offering a call option to acquire a further 31.5% stake in the company for 30 roubles per share. The deal was part of a plan to restructure Sistema-Hals' debt.

VTB Group is a Russian banking group providing services in Russia and the CIS countries, with a further presence in 18 countries globally. The
Government of the Russian Federation owns 77.5% of VTB.