Chairman of Armenian CB: Merger of Ameriabank and Cascade Bank will
create new investment opportunities for Armenia’s banking system
10.04.2010
ArmInfo. The merger of Ameriabank and Cascade Bank will create new
investment opportunities and will foster financial intermediation in
Armenia’s banking sector, Chairman of the Central Bank of Armenia
Artur Javadyan said during a press-conference today.
He said that the cost of the deal is a commercial secret. He welcomed
the merger and said that this deal will have continuation.
Javadyan said that Ameriabank and Cascade Bank have seriously
continuted to the stabilization of Armenia’s banking system. Since
2007, when TDA Holdings Limited bought a controlling stake in
Ameriabank (former Armimpexbank), the bank has repeatedly replenished
its capital by issuing additional shares. As a result, the bank has
increased its assets sevenfold and has jumped from 16th to 7th place
in this index. As regards Cascade Bank, it has always been known for
its high culture and quality.
Javadyan urged the Armenian banks to create conditions for improving
corporate ethics: "Such a post-crisis consolidation will foster
financial intermediation: investments will become larger, risks – more
controllable, and it will be easier to confront challenges."
Chairman of the Board of Directors of Ameriabank, Chairman of the
Board of Directors of Troika Dialog Ruben Vardanyan said that
Ameriabank is not going to change its strategy as a result of the
merger. "We give high priority to consolidation and believe that the
bank’s organic growth would take a long time while the merger with
Cascade Bank will speed up this process especially as Cascade Bank and
Ameriabank have similar ideologies. We are happy that Mr. Cafesjian
will remain our shareholder and hope that our bank will provide
services not only in Armenia but also abroad," Vardanyan said.
Member of the Board of Directors of Ameriabank Andrey Lazarian said
that in the next five years the bank will study the capacities of the
Georgian, Iranian and Southern Russian markets. "We will continue to
be a corporate bank with serious investment banking projects and will
go on offering retail products to corporate customers."
Answering ArmInfo’s question Vardanyan said that the stakes of the
shareholders of the merged bank will be specified and revised
depending on the shareholders’ structure. This information will be
made public only when the deal is finalized in compliance with the
CB’s requirements on disclosure of information on shareholders. The
managers of the bank will be allowed to buy shares. This will be a big
stimulus for them as they will feel themselves as owners rather than
just executors.
Member of the Board of Cafesjian Family Foundation Steve Scallen said
that Gerard Cafesjian has welcomed the merger as it will allow
creating a stronger bank and is ready to support the development of
the other companies incorporated into Cascade Capital Holdings
(Cascade Insurance and Cascade Investments) and to carry out different
projects in Armenia.
On April 10, 2010 Ameriabank and Cascade Bank announced that TDA
Holdings Limited, the owner of Ameriabank, had bought 100% of Cascade
Bank’s shares. The agreement between TDA Holdings Limited and Cascade
Capital Holdings, the shareholder of Cascade Bank, was signed on March
31. TDA Holding acquired shares in Cascade Bank as the first step in a
merger of the two banks. The merger is to be completed by November
2010. The former shareholder of Cascade Bank, Cafesjian Family
Foundation, will get a small share in the capital of the bank.
The amount of the deal has not been announced. The merger will create
one of the strongest financial institutions in Armenia with
consolidated capital of USD 75 million, assets of USD 400 million,
liabilities of USD 262 million assuring the bank among top three
positions in the domestic market. As of late 2009 total capital of
Cascade Bank was $20.1 million (17th position in the banking system)
and capital of Ameriabank was $57.5 million (4th position).