Binbank's chief executive Mikhail Shishkhanov in partnership with Russia's savings bank Sberbank Investments is buying Inteco, one of the country's leading construction and property companies, for a price said to amount to $1.2 bn (EUR 850 mln).

In a statement, Inteco - which is owned by former Moscow Mayor Yury Luzhkov's wife, Yelena Baturina - said Shishkhanov will acquire 95% of the shares while Sberbank is buying the remaining 5% stake. The parties signed the agreement last week with the deal expected to be completed by the end of the month. According to the terms of the offer, the acquiring parties guarantee continuity for all liabilities of Inteco to third parties.

'The realisation of new projects in the field of investment and in development both in Russia and abroad requires significant additional investments,' Baturina said in the statement. 'In light of this, and considering the appropriate market proposal that was received, the decision was made to sell these assets.'