Intesa Sanpaolo sells Ukrainian subsidiary Pravex-Bank
Intesa Sanpaolo has signed an agreement to sale 100% of the capital of its Ukraine subsidiary Pravex-Bank to CentraGas Holding Gmbh for a consideration of €74m.
Finalisation of the transaction is subject to regulatory approval being obtained and is expected to take place within three to six months. As a result, the consolidated income statement will record a negative contribution of approximately €100m after tax, that includes approximately €60m attributable to the release of foreign exchange differences from the related valuation reserve.
Furthermore, the Intesa Sanpaolo Group has signed a binding memorandum of understanding concerning the sale of the stake held by subsidiary Intesa Sanpaolo Vita in Chinese insurance company Union Life (representing 19.9% of the latter’s capital) for a consideration of €146m.
This transaction will generate a positive contribution of approximately €30m after tax to the Group’s income statement. It is subject to prior authorisation being obtained from local supervisory bodies.
In the first half of 2014, following the sale-and-purchase agreements entered into in December 2013, already disclosed to the market, the Intesa Sanpaolo Group is expected to record a net capital gain of approximately €150m from the completion of the sale of 28.9% of SIA’s capital.