Press releases | Archive 2007
RBC acquires Burg Capital Bank
Moscow, November 21, 2007 - OAO RBC Information Systems (MICEX, RTS: RBCI) has announced the acquisition of the Russian-based commercial bank Burg Capital Bank. The purpose of the deal is to establish a fully fledged Internet payment system in Russia, whereby the bank will be used as a processing center. RBC has no plans to launch any traditional banking services on the basis of Burg Capital Bank.
Established in Moscow in August 1994, Burg Capital Bank is licensed to conduct banking operations with individuals and legal entities both in Russian rubles and foreign currencies, as well as brokerage and dealership activities. Before its acquisition by RBC, the bank belonged to Swiss investors.
The bank's book value stood at RUR220m ($8.8m) as of the 1st of October, 2007. On November 20, 2007, the extraordinary general shareholders' meeting of Burg Capital Bank made a decision to rename it into RBK Bank as well as elect a new Supervisory Board, where RBC received a majority vote. The closing of the acquisition is subject to regulatory approval and until this time no further details of the deal can be disclosed.
"E-commerce development in Russia has been stalled due to the absence of a widely used Internet payment system. The current number of companies that are actively involved in e-commerce and their turnover is insignificant compared to countries with a more developed Internet network. Only a very small percentage of consumers in Russia uses pre-paid cards to buy products and services on the Internet, and an even smaller number of people use credit cards to make payments on the Internet for security reasons. That is why, unlike in the West, Russian Internet users order large purchases online, but usually pay in cash upon delivery," RBC Chairman and CEO German Kaplun said.
"However we strongly believe that the e-commerce market in Russia has enormous potential. By utilizing the bank's infrastructure, we plan to offer the market a reliable, convenient and user-friendly Internet payment system, which will make a dramatic change in Russia's e-commerce sector. RBC intends to make this system truly widespread thanks to the loyalty of its multi-million audience," German Kaplun added.