Uzbekistan government approves accession of UzKDB Bank to RBS Uzbekistan Bank

Business Materials 18 March 2013 12:25 (UTC +04:00)

Uzbekistan, Tashkent, March 18 / Trend D.Azizov /
The government of Uzbekistan has recommended that the Central Bank assists closed joint-stock company UzKDB Bank in resolving organisational and procedural issues related to the accession of CJSC Royal Bank of Scotland O'zbekiston MB to CJSC UzKDB Bank, according to an order of the cabinet 'on the organisational issues of the CJSC Bank UzKDB, adopted last week.

The preamble of the document says it was adopted due to the acquisition of the shares of Royal Bank of Scotland NV (Netherlands) in Royal Bank of Scotland O'zbekiston MB CJSC by the Korea Development Bank (Korea Development Bank, KDB), as well as to enhance cooperation with the Republic of Korea.

As reported earlier, in December 2010 KDB acquired the share of British Royal Bank of Scotland (RBS) in the Uzbek Royal Bank of Scotland Uzbekistan (RBS Uzbekistan) constituting 82.35 per cent. The cost of the acquired package has not been disclosed.

According to KDB, the South Korean bank paid an amount almost equal to the residual value of the fixed assets of RBS Uzbekistan.

In December last year, stockholders of the Uzbek-Korean UzKDB Bank confirmed the reorganisation of the bank in the form of its accession to the Royal Bank of Scotland Uzbekistan (RBS Uzbekistan), also approved the merger agreement and the deed of conveyance for integration of the two banks.

Stockholders of both banks authorised the boards' chairmen to sign the documents on behalf of UzKDB Bank and RBS Uzbekistan.

Shareholders also authorised the executive boards of the banks to implement the decisions of the general meetings of shareholders and granted the chairmen of the boards the right to notify creditors of the reorganisation.

As reported earlier, the shareholders' decision was made in accordance to the plan of the government of Uzbekistan's decision that will allow it to complete the legal process of the merger in early 2013, a representative of UzKDB Bank clarified.

It is expected that the merger of UzKDB Bank and Bank RBS Uzbekistan will create the largest foreign bank in Uzbekistan. According to estimates of KDB, after the merger the assets of the bank will increase by about 2.5 times and reach 670 million.

Established in 1996 as a closed joint-stock company, RBS Uzbekistan is currently the largest joint bank in Uzbekistan. The shareholders are KDB (82.35 per cent of shares) and the National Bank for Foreign Economic Activity of Uzbekistan (17.6 per cent).
The bank serves more than 500 enterprise customers, mostly international companies trading with Uzbekistan.

CJSC UzKDB Bank (until February 2006 - UzDEUbank) was established in 1997. The authorised capital of UzKDB Bank reached $12.27 million. The bank's shareholders are KDB - 88.8 per cent, the National Bank for Foreign Economic Activity of Uzbekistan and the Uzbek bank Turon with 5.6 per cent each.