Russia's Otkritie reportedly to take control of Qiwi

By bne IntelliNews June 13, 2017

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."

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Uzbekistan’s key rate held at 14% as central bank points to fears over reacceleration of inflation

Uzbekistan's central bank on April 25 kept its benchmark interest rate on hold at 14%, pointing to risks that inflation could once more accelerate. Planned hikes of state-regulated prices for ... more

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

Follow Us On

Most Read

  1. Don't mention the "D" word - Ukraine
    8 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. The models are wrong, climate change is accelerating faster than predicted
    3 days ago
  4. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    11 days ago
  5. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    29 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    1 month ago
  4. Saudi Arabia to scale back plans for Neom city
    18 days ago
  5. Iran vs Israel: Who is better equipped for war?
    14 days ago

Reports

Dismiss