UniCredit Sale of Alfa Bank Stake Faces Delays: Sanctions Update
3/21/2022
Italy's second largest bank UniCredit is encountering delays in the sale of its stake of Russia's Alfa Bank, due to international sanctions.
"UniCredit in November exercised an option to sell its 10% in ABH Holdings, the owner of Alfa-Bank, expecting the deal to close by March, according to filings. But the sale may not be finalized in time after the European Union and the U.S. imposed sanctions on Alfa-Bank following Russia’s invasion of Ukraine, said people familiar with the matter. The Milan-based lender was set to receive a net $137 million from the sale because the disposal price of about 287 million euros ($317 million) would be partly offset by liabilities."
Last week, UniCredit’s CEO said the bank was reportedly considering an exit from Russia.
“No conclusions can be drawn overnight, but we will report soon with more detail,” said UniCredit Chief Executive Officer Andrea Orcel at a Morgan Stanley conference.
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