PPF Group intends to sell NOMOS stake to fund growth in Russia, Asia
PPF Group N.V. announces that, following an offer for its shares in Nomos Bank Group (“Nomos”), PPF intends to sell its 26.5% stake in the Russian private bank in order to invest in the further development of its key assets in Russia and to fund expansion in the fast-growing Asian markets.
PPF would use the proceeds from the sale to further support its growth businesses, particularly in Russia, and to develop new opportunities. Home Credit Group, the leading consumer finance provider in Central and Eastern Europe and Asia, has built a market-leading position in Russia and continues to expand its distribution network and increase its loan portfolio. PPF believes there remains further scope for growth in Russia, as well as in Asia where Home Credit has a solid foothold in China and is well-placed to capitalise on the significant growth potential in that region.
In addition, the transaction proceeds would support the development of the Group’s real estate projects in Russia, in both logistics centres and office parks, and would underpin the Group’s ability to take advantage of new opportunities in the Russian consumer electronics market under the Eldorado Brand. The capital reallocation would also enable PPF to participate in the tender for a mobile phone license in the Czech Republic later this year.
Since 2007 when PPF first invested in Nomos, the bank has grown significantly in terms of its balance sheet and earnings, its geographic footprint, its presence across the banking segments and its international profile. Today, Nomos is the eighth largest banking group in Russia by assets and the country’s second largest privately owned universal bank. It has a clear growth strategy, a well-defined corporate governance structure, a diversified international shareholder base with a 25% free float and a Global Depository Receipt (GDR) listing on the London Stock Exchange.
Petr Kellner, the founder and principal shareholder of PPF Group N.V. said: “The offer for our stake in Nomos, and our intention to sell, has come at a point where we believe there is a clear, near-term window of opportunity for us to invest in several of our other businesses to maximise their growth potential. We continue to believe in the strategy and long-term growth potential of Nomos and representatives of PPF will remain on the Nomos board and continue to support the bank’s management to ensure a smooth transition.”