Russian financial group Otkritie plans to increase its ownership in the Russian payment system Qiwi from its current 8.85% to 63.85%, paying about $700mn (€624mn) for the stake, Vedomosti daily reported on June 13.
Qiwi specialises in payment services via physical, online and mobile channels, processing over RUB69bn (€1bn) of cash and electronic payments per month and servicing more than 18mn virtual wallets and 157,000 kiosks and terminals.
Earlier this year, Otkritie purchased a diamond-producing unit of Lukoil for $1.45bn (€1.29bn) and applied for an acquisition of Rosgosstrakh Bank from the top 50 bank list.
Otkritie became a Qiwi shareholder in 2015, when it contributed its Contact money transfer system and Rapida payment processing platform in exchange for 5.6mn Qiwi shares (vs. the 4.0mn it currently owns).
"There have been no major joint product developments that we have seen, future products could easily be developed on a commercial basis and we do not believe Qiwi has searched widely for strategic investors," Renaissance Capital said in a research note.
"For Otkritie spending $700mn to increase its exposure to early stage Russian fintech seems aggressive," the note added. "We believe the transaction might be aimed at better positioning Qiwi from a regulatory perspective."
The European Central Bank (ECB) President Mario Draghi said on March 8 that the Eurozone’s central bank will seek clarity on what role the Latvian central bank governor Ilmars Rimsevics has ... more
The Azerbaijani government has finished taking over $2.2bn worth of external debt owned by the country's largest bank, International Bank of Azerbaijan (IBA), APA news agency reported on March 5 ... more
As Iran gets closer to Persian New Year’s Day (March 21), the great numbers of people wanting to travel abroad for the holidays are becoming increasingly anxious about the apparent evaporation of ... more