Tinkoff monetizes his bank's shares

Oleg Tinkov will sell 6.6% of TCS Group Holding (the parent company of Tinkoff Bank). The market value of these shares is now more than 236 million dollars.
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The fact that Tadek Holding & Finance SA is connected with Oleg Tinkov. put up for sale 12 million global depositary receipts of TCS Group Holding (6.6% of the company), the TCS Group said on the London Stock Exchange. According to the exchange, if the whole package is sold, the seller will hold a 48% stake in the holding.

TCS Group is a 100% owner of Tinkoff Insurance and TKS Bank (in the third quarter of 2017 it ranks 33rd in terms of assets in the Interfax-100 rating, prepared by Interfax-CEA).

The sale is expected to be carried out according to the accelerated procedure (accelerated bookbuild, ABB). The organizer of the transaction is Morgan Stanley. Terms of the transaction are not disclosed.

Tinkov's structures undertake not to carry out the further sale of TCS Group securities within 180 days, the group's report says.

Immediately after the announcement of the sale of TCS shares in the evening of November 20, they were worth $ 19.7 per share. Consequently, the market value of the stake that Tinkov put up for sale will be $ 236.4 million.

According to Tinkov, during the "period of volatility" that was on the market, he "supported our history and our investors and bought out securities from those who wanted to sell them." "Now, when the quotes of our securities have recovered, it's time to sell part of the package back to the market, which, I hope, will contribute to further improving the liquidity of our receipts," says Oleg Tinkov's statement to RBC.

Now the shares of TCS Group Holding are trading higher than at the time of the IPO four years ago ($ 17.5 per share). For the first time the company's shares exceeded the placement price on October 25. The bank's shares are growing in price since 2016 (then the price for them rose from $ 3 to $ 10.5 per year). In early 2017, Reuters reported that TCS Holding plans a secondary offering of shares for $ 60-70 million. In July, the bank reported that Tinkov would increase its stake in the company and buy its depositary receipts for $ 30 million.

Tinkov, with a fortune of $ 1.2 billion, ranks 79th in the list of 200 richest businessmen in Russia, according to Forbes.

"Obviously, Oleg Tinkov decided to fix profits on the shares of TCS Bank, now is a good time - the bank's shares exceeded the cost of primary placement, the bank showed a good result for the third quarter," says Mikhail Ganelin, senior analyst at the banking sector Aton. He noted that in the framework of accelerated sales (ABB), shares are sold, as a rule, at a discount of 5-7%.

On November 20, TCS Group Holding announced its IFRS financial results for the third quarter of 2017. The group for the quarter increased its net profit under IFRS by 1.7 times, to 5 billion rubles. In general, in the first nine months of 2017, it also earned 1.7 times more than in the same period last year (12.6 billion versus 7.3 billion rubles).

Presenting the results under IFRS, TCS Group Holding announced plans for aggressive growth in 2018. In particular, the forecast for net profit in 2018 is 24 billion rubles. The loan portfolio is planned to increase by 25%, the group said.