RBC DAILY. Sberbank of Russia is in talks over the purchase of 100% of UFG Group, whose beneficial owner is Charles Ryan, RBC daily wrote quoting the bank’s source. According to the same source, since last autumn Sberbank has been eying foreign companies that operate on the Russian wealth management services market. “Right now, negotiations are mainly conducted with UFG major shareholder Charles Ryan. The bank is interested in rolling out wealth management business and this is set forth in the lender’s development strategy until 2014," the newspaper’s interviewee said. Currently, Sberbank serves well-off customers through a small division established in 2009 and the transaction will allow it to become one of the largest players on the wealth management market in Russia.
UFG, or United Financial Group, was incorporated in 1996 by former finance minister Boris Fedorov and banker Charles Ryan. In 2005 100% of UFG was bought by Deutsche Bank, and Charles Ryan was appointed Deutsche Bank CEO in Russia. Fedorov retained UFG Asset Management. After his demise Charles Ryan left Deutsche Bank and came back to UFG Asset Management Group.
According to a RBC daily source in Sberbank, the lending institution is interested not in all the companies that make up investment holding UFG. “I can say exactly that Sberbank is not interested in buying UFG Wealth Management, which provides only consulting services. We’re eying UFG’s offshore funds that are run by a company registered on the Bahamas, and a number of other assets of the group," the source emphasized. The transaction price could total $30 mln to $35 mln. UFG could become a core for Sberbank to roll out its own business in the wealth management sector, the bank’s representative added. If the negotiations end successfully Charles Ryan could stay at UFG as a chief executive.
The newspaper’s source close to UFG confirmed the negotiations with Sberbank are in progress. The bank did not answer the newspaper’s request on Tuesday.
