VTB Selling Majority Share in Rustranscom

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Two sources stated that VTB will sell its majority share in Rustranscom, a major grain train owner in Russia, to Demetra Holding, a firm that the Russian bank already owns.

VTB utilized Demetra to combine its grain infrastructure and trading businesses, which it had built up through acquisitions in 2019 and 2020, Reuters reports.

Rustranscom was on a list of firms VTB wanted to sell, according to VTB’s Chief Financial Officer Dmitry Pyanov. He predicted that VTB “would lose control of this firm in the immediate term,” but he didn’t elaborate.

Demetra would acquire the share in Rustranscom, according to two individuals who begged not to be identified.

Demetra and Rustranscom’s ownership structures would largely stay unchanged, according to Demetra. Requests for more information from VTB were not immediately returned.

After the founders of the railcar company aborted intentions for an initial public offering (IPO) in London, the Russian bank purchased a majority interest in Rustranscom – 50 percent plus one share – for 29.6 billion rubles ($403 million) in 2019.

Half of the holding firm was sold by VTB to two Russian investors in 2020 following merging grain businesses in Demetra. To preserve control of Demetra, VTB kept 50 percent plus one share.

After the current deal, Rustranscom’s founders, Konstantin Zasov and Konstantin Sintsov, will retain a share in the railcar company.