39. Subsequent Events

January 2012 the Group acquired 100% share in the insurance company Allianz Life. The company will be focused on cumulative and investment life insurance.

In January 2012 the Group signed an agreement for the sale of 74.5% share of OJSC Holding company GVSU Center. The settlement took place in February 2012. As a result the Group lost control over subsidiaries of OJSC Holding company GVSU Center. Also in February 2012 the Group signed an agreement for the sale of the remaining 25.5% share. Preliminary financial result (loss) on disposal was RR 57 mln. As at 31 December 2011 assets and liabilities of OJSC Holding company GVSU Center were included in Assets/liabilities of the disposal group. Refer to Notes 15 and 20.

On 3 February 2012 the Group launched a venture fund focused on investing in high technology companies and projects. The fund will be managed by Troika Ventures (venture department of Troika Dialog Group Ltd.). Currently the total amount of funds under management is above USD 100 mln. The Group together with foreign partners is planning to increase investments in the venture fund from USD 100 mln to USD 500 mln. In February 2012, following the entering into sale and purchase agreement in September 2011, Sberbank has completed its acquisition of 100% of Volksbank International AG (“VBI”).

In the period between signing and closing, the selling shareholders have made capital contributions to increase VBI shareholders’ equity to offset Q3 2011 losses, and also agreed to reduce the Euro 585 mln consideration by Euro 80 mln. Final consideration paid by the Bank amounts to Euro 505 mln.

This transaction represents Sberbank’s first major acquisition outside the CIS and is another step in its transformation from a dominant domestic financial institution to a leading international bank. VBI has 295 branches and over 600,000 clients. VBI’s subsidiaries are within the top 10 financial institutions (by total assets) in each of Bosnia and Herzegovina, Croatia, the Czech Republic and Slovakia, and within the top 15 financial institutions (by total assets) in each of Hungary, Serbia and Slovenia. It also has a presence in Ukraine and holds a limited banking license in Austria.

This transaction is an important step in Sberbank’s international strategy to benefit from a growth potential offered by Central and Eastern European countries.

The purpose of determining goodwill from the business combination provisional fair values of identifiable assets and liabilities of VBI based on the results of an independent external appraisal at the acquisition date were as follows:

In mln of Russian Roubles Provisional fair value
Cash and cash equivalents 43,215
Mandatory cash balances with central banks 10,587
Trading securities 362
Securities designated at fair value through profit or loss 400
Due from other banks 16,069
Loans and advances to customers 257,960
Securities pledged under repurchase agreements 4,927
Investment securities available for sale 14,907
Investment securities held to maturity 1,964
Deferred income tax asset 994
Premises and equipment 4,439
Other assets 9,867
Total assets 365,691
Due to other banks (48,484)
Due to individuals (110,629)
Due to corporate customers (78,076)
Debt securities in issue (9,514)
Other borrowed funds (93,117)
Deferred income tax liability (386)
Other liabilities (5,018)
Subordinated debt (2,744)
Total liabilities (347,968)
Fair value of net assets of subsidiary 17,723
Calculation of goodwill:  
Total purchase consideration 20,184
Non-controlling interest at fair value 341
Fair value of net assets of subsidiary (17,723)
Goodwill on acquisition 2,802

Gross amount of loans and receivables acquired through this business combination amounted to RR 276 541 mln. The amount of cash flows not expected to be received was assessed at RR 18 581 mln.

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