This evening, Raiffeisen International Bank-Holding AG signed a contractto sell 100 per cent of the shares of JSCB Raiffeisenbank Ukraine toHungarian OTP Bank Ltd. The sale is still subject to a successfulclosing, in particular the approval of the Austrian Financial MarketAuthority, the Ukrainian National Bank and the anti-trust authorities inUkraine and Hungary.
Raiffeisenbank Ukraine has been operational since 1998. It had totalassets of more than€ 1.2 billion and 39 branches at the end of 2005. The bank, which had a net asset book value of € 139 million at the end of 2005, will be sold for € 650 million. Herbert Stepic, CEO of Raiffeisen International, reiterated that the group did not intend to follow a similar strategy in Russia in connection with the purchase of Impexbank.
The sale of Raiffeisenbank Ukraine will eliminate merger costs with BankAval, which was purchased in 2005. Furthermore it will be possible tospeed up the transformation process, i.e. the full integration of BankAval into the Raiffeisen International Group (adaptation of systems,implementation of group-wide standards regarding service, management andproducts). The Raiffeisen brand will not be included in the sale,instead it will be incorporated into the Bank Aval name. The Aval brandwill be re-branded into Raiffeisen Bank Aval. Raiffeisen International’s further expansion in the high growth banking sector in Ukraine will be continued by Raiffeisen Bank Aval. After closing, Raiffeisen Bank Aval will still play a leading role as the second largest bank in the Ukrainian market, with total assets of € 3.4 billion and 1,342 branches.
Raiffeisen International operates one of the leading banking networks inCEE with subsidiary banks and leasing companies in 16 markets. More than10 million customers are attended to through approximately 2,700business outlets. Representative offices in Lithuania and Moldovacomplement the Group''s presence in the region. Raiffeisen Internationalis a fully consolidated subsidiary of Raiffeisen Zentralbank OsterreichAG (RZB), which owns 70 per cent of the common stock. The remaining 30per cent is free float, the shares are traded on the Vienna StockExchange. RZB is a leading corporate and investment bank in Austria andthe central institution of the Austrian Raiffeisen Banking Group, thecountry''s largest banking group.
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