MOSCOW, February 20. /TASS/. VTB plans to convert preferred shares into ordinary shares, a move that will increase the government’s stake in the bank’s ordinary shares to 74.45%, First Deputy Chairman of the Management Board, Deputy President of Russia’s second-biggest lender Dmitry Pianov told reporters.
"As a result of this conversion, the state’s slice of ordinary shares will increase <...> from 50.1% to 74.45%," he said. The change in the structure of shareholder capital will not affect dividend payments to minority shareholders, Pianov said, adding that their share of the dividend flow will remain unchanged.
The top manager added that a separate bill, which has already been submitted to the State Duma (lower house of the parliament), is required to make the conversion official.
The conversion "will not dilute VTB's capital," and it will take place at a weighted average price of one security, which is "a positive sign for the market," he noted.
"De facto, part of the economic value and future [dividend] flows is redistributed from the state to the minority shareholder," Pianov said.
An extraordinary meeting of VTB shareholders on the issue of conversion of shares is scheduled for April, after the relevant draft law is passed. By May, Pianov expects only ordinary shares to remain in VTB’s capital.