VTB, Russia's second-largest bank, yesterday acquired a 20-per cent stake in the country's largest iron ore miner Metalloinvest, in a deal valued at about $2.5 billion.
VTB acquired the stake from Vasily Anisimov, whose company Coalco Metals owes VTB $1.5 billion. The sale would pay Coalco Metals debt to VTB, said Dewey & LeBoeuf, a law firm that consulted the bank on the deal.
Anisimov, one of Russia's richest men, had pledged a 10-per cent stake in Metalloinvest in 2008 to VTB for the loan.
The deal would value Metalloinvest at about $12.5 billion.
The sale of Coalco's 20-per cent stake in Metalloinvest was carried out by way of an auction, Dewey & LeBoeuf said in a press release.
Andrei Kostin, VTB's president, said the bank would hold the stake for two to three years, adding that Metalloinvest is expected to go in for an initial public offering in the next two years.