UniCredit to sell Ukrainian unit

Italy’s UniCredit has signed a binding agreement to sell its Ukrainian subsidiary Ukrsotsbank to ABH Holdings – part of Russian Alfa Group –  in exchange of a 9.9% share in the company.

Agreements foresee specific protection rights for both parties including the possibility for UCG to appoint one board member of ABHH and to cause an IPO of ABHH.

Furthermore, parties agreed a put/call option mechanism on UCG’s stake in ABHH after the 5th anniversary from closing.

The sale of the Ukrainian unit is expected to result in a €200m one-off charge for UniCredit in the Q4 2015 balance sheet.

Both UniCredit and ABH Holdings are now waiting for regulatory approvals as the deal is expected to close in 2016.

Rothschild and UniCredit Corporate & Investment Banking are acting as advisers on the deal.

The sale of the unprofitable Ukrainian unit was part of a business development plan announced by UniCredit towards the end of 2015 where 18,200 job cuts were announced.

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