Sale of Raiffeisenbank Ukraine closed
21 Nov 2006
Raiffeisen International Bank-Holding AG closed the sale of 100 per cent of its shares in JSCB Raiffeisenbank Ukraine to OTP Bank Plc, Hungary, after all approvals by supervisory authorities had been granted, said the bank in a press release.
The purchase agreement had been signed on 1st June 2006.
Raiffeisenbank Ukraine (now CJSC OTP Bank) had a balance-sheet total of more than EUR 1.6 billion at the end of September 2006 and operated from 42 business outlets. The sales price amounts to EUR 650 million. For Raiffeisen International the sale produces an extraordinary gain of about EUR 470 million, which will be entered into the accounts of the fourth quarter.
With the sale of Raiffeisenbank Ukraine, Raiffeisen International did avoid the cost and time-intensive merger with Bank Aval, acquired in 2005, which has been rebranded into Raiffeisen Bank Aval for several weeks now. In addition, the sale accelerates the transformation process of Raiffeisen Bank Aval, namely its full integration into the Group (adaptation of systems, implementation of Group standards). Raiffeisen Bank Aval, which is the second-largest bank in the Ukraine with a balance-sheet total of EUR 4.1 billion and 1,330 business outlets (both figures are from 30th September 2006), will continue to play a leading role in the fast growing Ukrainian banking market.
Raiffeisen International operates one of the leading banking networks in CEE with subsidiary banks and leasing companies in 16 markets. More than 11.7 million customers are attended to through more than 2,775 business outlets. In eight markets, the respective Network Bank ranks among the three largest local banks. Representative offices in Lithuania and Moldova complement the Group's presence in the region. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns 70 per cent of the common stock. The remaining 30 per cent is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group.
Raiffeisen International's balance-sheet total amounted to € 50.3 billion at the end of the third quarter 2006 (plus 24 per cent compared with year-end 2005). Consolidated profit (after minorities) increased by 93 per cent to € 539 million, compared with the same period of 2005 (including the one-off effect related to the sale of the minority stake in Kazakh Bank TuranAlem).
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