3rd Mar 2008 07:02
Barclays PLC03 March 2008 3rd March 2008 BARCLAYS PLC Barclays to acquire Russian bank Expobank Barclays Bank PLC ("Barclays") has entered into an agreement with PetropavlovskFinance (Limited Liability Society) to acquire 100% of Expobank for aconsideration of approximately $745 million (£373 million) which Barclays willfinance out of existing cash resources. Expobank focuses principally on Western Russia, with a substantial presence inMoscow and St Petersburg. Founded in 1994 it has grown rapidly and comprises ablend of retail and commercial banking, operating 32 branches and dealing with arange of corporate and wholesale clients. As at 31 December 2007, Expobank hadnet assets of $186m (£93m). The acquisition of Expobank advances Barclays stated strategy of increasing itsexposure over time to emerging markets with good growth characteristics. Inaddition to Barclays Capital's existing successful risk management and financingbusiness in Russia, Barclays has, within the management of Global Retail &Commercial Banking, an established team of professionals with substantialexperience of operating in Russia. By 2011, we expect that the transaction willgenerate economic profit, will be earnings accretive and will achieve a returnon investment significantly above the cost of equity. The transaction is expected to close in Summer 2008 after receipt of appropriateregulatory approvals. Following completion, Expobank will be part of BarclaysGRCB Emerging Markets business run by Ahmed Khizer Khan. Andrey V. Vdovin andKirill V. Yakubovskiy will remain as members of the Board of Directors ofExpobank. Sergey M. Radchenkov will remain as Chairman of the Management Board(equivalent to Chief Executive Officer) and will report to Ahmed Khizer Khan. Frits Seegers, Chief Executive, Global Retail and Commercial Banking, Barclayssaid: "Expobank is a well-run bank with a good track record of innovative distributionand represents a great opportunity for Barclays. Its existing relationships andinfrastructure create the ideal platform for us to become one of the leadingretail and commercial banks in Russia, one of the world's fastest growingeconomies and a market we have been keen to enter for some time." Kirill Yakubovskiy, Chairman of the Board of Expobank, said: "We are very proud that Expobank, which we created and developed, is to enterthe next stage of its evolution hand in hand with one of the world's largestbanks. Becoming part of the Barclays group is the start of a new era not onlyfor Expobank itself, but also for the Russian banking sector as a whole." "The professionalism and vast experience of Barclays will make an invaluablecontribution to Expobank's further development in a transaction that isbeneficial for all involved. This will open new professional and careeropportunities for our employees and, most importantly, will bring real benefitsfor our customers. Andrey Vdovin and I will stay with the bank as members of theBoard of Directors and Sergey Radchenkov will remain as the Chairman of theManagement Board." - ENDS - For further information please contact: Investor Relations Media RelationsMark Merson / John McIvor Alistair Smith/Robin Tozer+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6132/6586 About BarclaysBarclays PLC is a major global financial services provider engaged in retail andcommercial banking, credit cards, investment banking, wealth management andinvestment management services. With over 300 years of history and expertise inbanking, Barclays operates in over 50 countries and employs 135,000 people. Wemove, lend, invest and protect money for over 27 million customers and clientsworldwide. For further information about Barclays, please visit our websitewww.barclays.com. About ExpobankExpobank began operations in 1994 and is owned by Petropavlovsk Finance.Headquartered in Moscow, Expobank's distribution network comprises 32 branches,12 cash desks and one of the largest ATM networks in Moscow. It has over 250,000retail relationships, approximately 6,500 SME customers and 1,300 employees.www.Expobank.ru Forward-looking statementsThis document contains certain forward-looking statements within the meaning ofSection 21E of the US Securities Exchange Act of 1934, as amended, and Section27A of the US Securities Act of 1933, as amended, with respect to certain ofBarclays plans and its current goals and expectations relating to its futurefinancial condition and performance. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. Forward-looking statements sometimes use words such as 'aim','anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal','believe', or other words of similar meaning. Examples of forward-lookingstatements include, among others, statements regarding Barclays future financialposition, income growth, impairment charges, business strategy, projected levelsof growth in the banking and financial markets, projected costs, estimates ofcapital expenditures, and plans and objectives for future operations. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, including, but not limited to,UK domestic and global economic and business conditions, the continued effect ofvolatility in credit markets, market related risks such as changes in interestrates and exchange rates, the policies and actions of governmental andregulatory authorities, changes in legislation, the outcome of pending andfuture litigation, the success of future acquisitions and other transactions,and the impact of competition - a number of which factors are beyond Barclayscontrol. As a result, Barclays actual future results may differ materially fromthe plans, goals, and expectations set forth in Barclays forward-lookingstatements. Any forward-looking statements made by or on behalf of Barclaysspeak only as of the date they are made. Barclays does not undertake to updateforward-looking statements to reflect any changes in Barclays expectations withregard thereto or any changes in events, conditions or circumstances on whichany such statement is based. The reader should, however, consult any additionaldisclosures that Barclays has made or may make in documents it has filed or mayfile with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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