VTB shares rise as Wildberries deal is delayed to September

Shares in Russia’s VTB rose 1.62% on the Moscow Exchange on August 28 after the state-controlled bank delayed its partnership deal with the Wildberries & Russ group to September, according to RBC. The stock touched RUB51.615 ($0.65) at its intraday peak, recovering from a record low just below RUB50 two days earlier. The jump comes as the bank seeks to raise capital for the transaction, which is being partially funded by a new share issue.

Delaying the transaction

First deputy chief executive Dmitry Pyanov said VTB was not forcing the deal through. He explained that Wildberries’ resources are currently directed at problems linked to emergency events, an apparent reference to reported drone strikes on the retailer’s warehouses. Pyanov added that the terms of the deal had not been revised, but the timeline has shifted from August to September.

The bank plans to raise funds for the transaction through a previously announced additional share issue of RUB300bn to RUB400bn ($3.75bn to $5bn). Pyanov noted that the placement would come closer to the lower end of that range. He stated that the anchor investor group would remain unchanged, while retail participation would be modest given the gap between the issue price and the market price.

VTB’s net profit target for 2026 remains at RUB600bn. The executive said third-quarter profit would be a three-digit figure in billions of rubles, with the first digit a one. He defined success in the quarter as approaching an expected RUB400bn for the group over the first nine months. VTB’s net profit for January to July fell 12.7% year on year to RUB265.6bn, according to the group’s report, extending a decline that has run alongside pressure on the bank’s capital adequacy across the sector.

Strategic partnership details

VTB and RWB announced their strategic partnership in late May. The agreement includes VTB acquiring a 5% stake in WB Bank, controlled by Wildberries, and in other fintech assets of the group. Control of the assets stays with the marketplace. In exchange, WB Bank gains access to VTB’s infrastructure, including its ATM network and retail products. VTB gains a route into financial services on the Wildberries platform and its customer base.

RWB is the company formed by the 2024 merger of Wildberries and outdoor advertising operator Russ. Given the current operational difficulties facing the retailer, the bank’s focus on capital raising through this specific share issue is a prudent move. While the terms remain unchanged, the shift in timeline allows the bank to align the funding round with a period of relative market stability, reducing the risk of further volatility in the share price.