Sale of Volksbank International to Sberbank concluded
15.02.2012
Subtitle: Completion of the sale delivers 1.1 billion liquidity to VBAG and reduces risk by EUR 6.6 billion – final purchase price: EUR 505 million after payment of a fixed loss contribution by previous owners
Today in Vienna, the previous owners of Volksbank International AG (VBI) and representatives of Sberbank of Russia (Sberbank) officially finalised the sale of the VBI Group. Sberbank now owns 100 % of the shares in VBI (except Volksbank Romania, which was not included in the transaction).
The final purchase price amounted to EUR 505 million. Since the market environment has deteriorated significantly in the past few weeks, the previous owners participated in potential risks by payment of a fixed amount of EUR 80 million. These risks resulted primarily from the problems in Hungary and on a lower scale those in Slovakia. All other countries in which VBI is represented will have positive results in 2011. “We thereby re-established the negotiation basis at the time of signing and delivered what we promised,” emphasises VBAG Chief Executive Officer Gerald Wenzel.
In addition to the purchase price, Sberbank assumed the existing long-term shareholder financing of almost EUR 2.1 billion. Moreover, a syndicate headed by VBAG will provide Sberbank with five-year funding of EUR 500 million.
“The sale marks an important step in VBAG’s restructuring process. After the successful sale of the property developer Europolis, a further transaction has now been concluded in an extremely difficult market environment. The transaction has many positive effects for VBAG,” says Wenzel.
With the sale of VBI, the financial situation of VBAG will continue to improve:
- Firstly, through a strengthening of the liquidity position – with the deal, funds of EUR 1.1 billion become available that can be invested in the development of the core business.
- Secondly, through a significant reduction of the risk-weighted assets (RWA) in relation to total risk (including operational risk) by EUR 6.6 billion.
- Thirdly, the equity ratio improves by approximately two percentage point (according to Basel II) and the burden on the net core capital ratio is eased by approximately EUR 300 million.
VBAG Managing Board member Michael Mendel said, “We are pleased that Herman Gref, Sberbank’s CEO, is making a clear commitment, establishing VBI as a strong basis for future growth. We are convinced that the VBI network, which is now in the hands of Sberbank, will benefit more fully from the growth opportunities of its markets, with the help of the new owner.”
VBI CEO Friedhelm Boschert declared, “Today, we are pleased – after 20 years of already having been engaged in central and eastern Europe – to start a new chapter in our success story with Sberbank as a strong owner. CEE will remain a growth region in which together we will now be able to take best possible advantage of the opportunities offered by the dynamic markets.”
The bank network acquired by Sberbank consists of nine institutions in eight countries: Slovakia, the Czech Republic, Hungary, Slovenia, Croatia, Bosnia-Herzegovina, Serbia and the Ukraine. At the end of 2011, the nine VBI banks had 295 branches and 4,157 employees. Prior to the Closing, 51 % of VBI was held by Österreichische Volksbanken-AG (VBAG), with the two German banking groups DZ BANK AG and WGZ BANK AG and the French bank BPCE S.A., each holding a further 24.5 %.
Sale of Volksbank International to Sberbank concluded - Volksbank AG
non casualmente sulle 643 oggi si vedeva denaro a 27, dai minimi di 20 delle ultime settimane/mesi