The Antimonopoly Committee of Ukraine (AMCU) on March 2 granted permission to Georgian citizen Rati Tchelidze, a beneficiary of CC Capital Group, whose two companies – Mister Cash LLC (TM Mister Cash) and CC Loan LLC (TM CC Loan) – had their licenses to provide financial loans revoked by the National Bank on February 24.
“To grant a permit to an individual – a citizen of Georgia Rati Tchelidze to acquire shares of joint stock company BTA Bank, which provides more than 50% of the votes in the supreme governing body of the company,” the decision of the AMCU, published on its website, reads.
Currently, 100% of shares of the Ukrainian BTA Bank belongs to the Kazakh BTA Bank, once one of the largest banks in Kazakhstan, which surrendered its banking license there several years ago. It is now effectively an asset management company owned by Kazakh businessman Kenes Rakishev and the Fincraft Group (formerly Novacom Corporation), a holding company whose sole owner is Rakishev.
“BTA Bank Ukraine was founded in 1992. According to the NBU, as of February 1, 2023, the bank ranked 65th by assets (UAH 293.9 mln) out of 67 operating banks in Ukraine. The loss of the financial institution in 2022 was 33.6 million UAH.
“According to management, despite uncertainty with negative consequences of Russian military aggression against Ukraine … the use of assumptions about the bank’s ability to continue its activities on a continuous basis is adequate, given: the appropriate level of capital adequacy, according to NBU requirements – 112.19% (in 2021 – 121.08%); intention of shareholders to continue supporting the activities of the bank; significant level of liquidity (including that formed at the expense of own funds of the bank)”, – noted in BTA Bank report dated January 25, 2023
With regard to Mister Cash and SS Lawn LLC microloan services, these companies ranked 12th and 19th respectively in terms of revenues among all financiers for 9 months of 2022, while in terms of total revenues they ranked 6th.
The NBU revoked their licenses for lending activities, including on the terms of a financial loan, following unscheduled inspections, which revealed “facts of numerous violations of the requirements of the legislation on protection of consumers of financial services.
SS Lawn” revenue for 9 months of this year amounted to 434.0 million UAH, “Mr. Cash” – 286.8 million UAH, losses – respectively 60.0 million UAH and 47.6 million UAH, assets – 257.2 million UAH and 106.1 million UAH, equity – 220.2 million UAH 4.4 million UAH.
CC Capital group at the end of 2021 included the microcredit services CC Loan, Mister Cash and the insurance company Point (TM SK Opika), which in February this year was fined by the National Bank on the inspection nearly 2.3 million UAH for not entering into insurance contracts in writing. Before the war it was planned that the group will launch a marketplace of its financial products in 2022.
CC Loan also planned a second bond issue in 2022, which would have been larger than the debut one-year Series A issue in 2021, worth 100 million hryvnias, which matures May 13-18, 2022.
CC Loan has been in the online microlending market since 2015 with the CC Loan brand, designed primarily for consumers ages 26-30. In 2019, it launched the Mister Cash brand, aimed at a younger audience. Since 2019, the group has included an insurance company. The majority shareholder of all companies is CC Continental City Capital Ltd of Georgia citizen Rati Tchelidze.
BTA Bank (Kazakhstan), which owns 20.284% of shares in the National Joint-Stock Insurance Company Oranta (Kyiv), has reduced its block of shares to 0%, according to the information disclosure system of the National Securities and Stock Market Commission.
It is specified that the amount of voting shares of NS-Finance LLC (Kyiv) in Oranta increased to 72.389660% from 50.106890%, and their number – up to 95,718,477 from 66,254,700.
As reported, NS-Finance LLC notified of the conclusion of a sale and purchase agreement on December 13, 2021, as a result of which it became the owner of a controlling stake in Oranta in the amount of 50.0035%. After that, NS-Finance sent a public offer to purchase shares from all holders of the insurer’s shares at UAH 1.05 per share. The purchase of shares on its behalf is carried out by DM BROK LLC (Kharkiv).
According to the National Securities and Stock Market Commission, as of the first quarter of 2021, BTA Bank owned 35.17% of shares in Oranta, the Cypriot companies Visiline Limited – 9.424%, Cezavelios Holdings Ltd. – 5.623%, Chilwell Limited – 9.991%, and another 7.1826% – are held by Maria Loseva.
Oranta is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was reorganized, its founder on the part of the state was the State Property Fund of Ukraine (SPF). In 2007, the SPF sold the last state-owned block of shares to the investor.
The insurer operates on the basis of 33 licenses: 15 compulsory and 18 voluntary types of insurance.
The Kazakh fintech company Kaspi.kz has signed a sale and purchase agreement for 100% of BTA Bank Ukraine shares, the transaction is scheduled to be completed in the first half of 2022.
“We have entered into a sale and purchase agreement for 100% of BTA Bank Ukraine. It is purchased exclusively to obtain a banking license in Ukraine. This will allow us to launch fintech products, open mobile wallets, accounts, etc.,” the official website Kaspi.kz says.
As noted in the document, BTA Bank Ukraine conducts limited operational activities, it does not have branches and a loan portfolio. According to the holding, the deal will not have a significant financial impact on Kaspi.kz.
“With the banking license and payment licenses of Portmone Group, we will take a strong position and will be able to repeat the Super App strategy in Ukraine,” the report says.
The cost of the deal was not disclosed.
As reported, in October Kaspi.kz completed the acquisition of Portmone Group, an online payment platform in Ukraine, which was controlled by Europe Virgin Fund (EVF).
The Antimonopoly Committee of Ukraine (AMCU) at a meeting on Monday allowed a nonresident individual to acquire over 50% of the shares of BTA Bank (Kyiv).
“Permission is granted to an individual – a citizen of the Republic of Belarus to purchase shares of JSC BTA Bank, which grants that 50% of the votes in the management body of the company are exceeded,” the committee said on its website on Monday.
BTA Bank was founded in 1992. According to the National Bank of Ukraine (NBU), at the beginning of 2020, Kenes Rakishev was a shareholder of the bank, who indirectly owned 100% of the bank’s charter capital.
According to the NBU, as of October 1, 2020, BTA Bank ranked 71st in terms of assets (UAH 385.612 million) among 74 operating banks.
