Today, February 1, First Deputy Chairman of the Central Bank of the Russian Federation, Chairman of the Board of Directors of the MICEX Alexey Ulyukaev confirmed that the MICEX, which controls the Ukrainian PFTS stock exchange, will buy a controlling stake in RTS, which owns the largest stake of 40% in the Ukrainian Exchange.

According to Mr. Ulyukaev, the RTS valuation was $1.15 billion, the MICEX offered to pay 35% in real money, and the rest to be converted into MICEX shares with a ratio of 1:3.

“We expect to sign all the documents in the second half of April. After that, almost immediately, the deal will be closed,” he said, noting that the specified deadlines can only be adjusted if something force majeure occurs.

Alexey Ulyukaev added that “the Central Bank is planning a move to exit the capital of the merged company.” According to him, by June 1, 2011, the Central Bank of the Russian Federation plans to submit plans to reduce the share in the capital of the united exchange company for consideration by the country's leadership.

It is assumed that the schedule that is planned to be discussed will last two to three years.

Renaissance Capital, Alfa Bank, Aton, Troika Dialog and Da Vinci (manages about 12% of RTS shares) agreed to sell their stakes in RTS.

The creation of a merged company will reduce the share of the Central Bank of the Russian Federation in the authorized capital of the MICEX from the current 36% to less than 30%. A further reduction in the Central Bank's share will depend on the schedule for the MICEX IPO.

“The merged company will provide greater value. The Central Bank will not enjoy pre-emptive rights and participate in the IPO,” said the first deputy chairman of the Bank of Russia, noting that this will further reduce the Central Bank’s share in the authorized capital of the MICEX. In addition, there are other options for a gradual reduction in the share of the Central Bank of the Russian Federation in the MICEX. This schedule will be prepared by June 1, 2011.

Alexey Ulyukaev emphasized that the purpose of the transaction, in which the MICEX buys the RTS, is to strengthen the infrastructure of the financial market, including settlement, depository and clearing, to attract liquidity to Russia, return the liquidity that is leaving, and create additional one. In addition, he expects that the combined exchange will be as customer-centric as possible. It will be convenient for participants, decisions made there will be transparent, and the rights of bidders will be protected.

According to the Chairman of the Board of Directors of RTS, Jacques Der Megredichian, the Board of Directors of RTS decided to postpone the preparation of the IPO of RTS, which was planned for 2011, and focus entirely on the current transaction.

Based on materials from Interfax-AFI news agency

MICEX will buy a controlling stake in RTS