Qiwi Plc ADS (QIWI)

[b_avocet]

Post in Zero Hedge today about Otkritie Bank, which owns a bunch of shares, maybe needing a bailout. They the ones that made the big tender offer some months ago.

https://www.zerohedge.com/news/2018-03-16/russia-mulls-additional-trillion-ruble-bailout-failing-banks. "In August 2017 we noted Russia's largest private lender was in trouble and required a bailout. Then a month later, a second bank hit the wall and was bailed out. And now, five months later, Russia's central bank is mulling a further capital injection of a trillion rubles to rescue Otkritie and B&N Banks.


This is a portion of a very positive Seeking Alpha article on QIWI which mentions the bank. Likely you've all seen it already if you got here via NIA as some have mentioned:

".....In fact, as I discovered, the value in QIWI is so apparent that Otkritie, one of Russia's largest banks, in June of this year, commenced a tender offer to purchase for cash up to 24.8 million class B shares (QIWI has a dual share structure - there are 15.5 million class A shares and 45.08 million class B shares. Each class A share represents 10 votes, and each Class B share represents 1 vote) at a purchase price of $28.00 - a substantial premium to where it was trading then and where it is trading now. The tender offer was conditioned upon tendering of almost 50% of the class B shares not currently owned by Otkritie, and in the end, it failed. Only 12,539,256 shares had been tendered, significantly less than the minimum of 20,286,207 that was required (the tender failed after Mr. Solonin, who controls the company through preferential shares, said he would not sell despite a significant premium. Otkritie Bank then bought 12.2 percent of QIWI's shares for $99.5m from minority investors). Regardless, in an SEC filing by Otkritie, it was stated that it "continues to review its investment in QIWI and may, at any time, acquire additional securities in the open market or in privately negotiated transactions, with or without prior notice." In fact, on October 11th, 2017, Otkritie true to its word, purchased 1,225,000 ADS (American Depository Shares) at a price of 985 rubles (approximately $17) and 833,000 more shares at the same price. On November 30, 2017, Otkritie once again went on a buying spree and purchased a total of 2,199,898 ADS at a price of 938,000 rubles (approximately $16 a share) and on December 1, 2017, an additional 2,200,000 ADS at the same price. It is pretty clear that notwithstanding the failed tender, Otkritie continues to be interested in acquiring shares of QIWI."

I'm long a smallish holding of the stock.