Cyprus and Ukraine: Bank of Cyprus is selling its Ukrainian business to Alfa Group

By in

Cyprus and Ukraine: Bank of Cyprus is selling its Ukrainian business to Alfa GroupThe Bank of Cyprus and ABH Ukraine Limited, a member of the Alfa Group, have reached an agreement on the sale of Bank of Cyprus subsidiary bank in Ukraine, PJSC Bank of Cyprus, and its loans with Ukrainian exposures. The sale is subject to approval from the relevant regulatory authorities in Cyprus and Ukraine. The sale consideration is €225 million subject to adjustments made upon completion. The sale deal is estimated to take place by the end of the first quarter of 2014. It is expected that the proceeds of the sale will enhance the Bank’s liquidity position. The Bank’s strategy is to focus on core businesses and markets and dispose of operations that are considered as non-core, though is being implemented at a faster pace than what is anticipated in the Restructuring Plan. The Bank of Cyprus proceeded with what it considers to be a good transaction in order to deleverage and de-risk its balance sheet and to eliminate future potential risks relating to its Ukrainian investment, particularly given the political and economic environment prevailing currently in Ukraine.