News 31 October 2016

ABH Holdings S.A., banking group of Alfa Group Consortium, and international group UniCredit Group closed the deal on exchange of assets

UniCredit Group logo

Press release

ABH Holdings S.A. and UniCredit Group announced the closing of the deal to transfer 99.9 % of shares in Public Joint Stock Company “Ukrsotsbank” (UCG asset in Ukraine) in exchange for a minority 9.9% stake in ABHH.

October 31, 2016, Kyiv, Ukraine – Today, ABH Holdings S.A. (ABHH) that indirectly owns 100 % shares in Alfa-Bank Ukraine (through the holding company ABH Ukraine Limited (ABHU)) and UniCredit Group (UCG) announced the closing of the deal to transfer 99.9% of shares in Public Joint Stock Company “Ukrsotsbank” (UCG asset in Ukraine) in exchange for a minority 9.9% stake in ABHH.

As a result of this deal, UniCredit Group, the Italian banking group spanning over 17 countries, became a minority shareholder of ABH Holdings S.A., an investment holding company of Alfa Group headquartered in Luxembourg. Also, Andrea Maffezzoni, Head of Strategy, Business Development and M&A at UniCredit, will join the Board of Directors of ABHH.

Commenting on the closing of the deal, Mikhaіl Fridman, the Chairman of the Supervisory Board of international consortium Alfa Group, said, “We welcome our new partner UniCredit Group as a shareholder of our banking group. This partnership will allow us to step up in the development of ABHH group in all the countries in which the group operates, combining our expertise, years of experience and strengths of our teams.”

“This deal will undoubtedly result in the emergence in Ukraine of a strong player acting on the unified platform of two banks. We are going to compete for the leadership in the Ukrainian market, first and utmost, by upgrading the level of technology, increasing efficiency, improving quality of service for the clients, as well as reducing the cost of services and expanding their range,” added Mikhaіl Fridman regarding the plans for ABHH banking group’s development in Ukraine.

This deal has been carried out in full compliance with the laws and regulations. On September 8, 2016, the Antimonopoly Committee of Ukraine authorised concentration of ABHH having noted the positive effects of this concentration for the whole banking sector and that the banking system of Ukraine will receive a large and highly competitive bank, which will have a positive effect on its stability. In addition, the clients will get access to better products and services.

Also, on October 12, 2016, the National Bank of Ukraine has approved the deal between ABHH and UCG welcoming the first big M&A deal in the banking industry in recent years and expecting that the combination of competencies of the two international financial groups will promote the development of the banking service market in Ukraine.

Rushan Hvesyuk, the Chief Executive Officer of Alfa-Bank Ukraine, noted, “This is a unique deal in the financial industry of Ukraine. Ukrsotsbank and Alfa-Bank Ukraine have a long history of successful operation in the banking market and are rated among TOP 10. We have been through a few very difficult periods together with Ukraine and its economy. And now, as a unified team and with the support of our shareholders from two international banking groups, we will work alongside to create a new leader of the country’s banking market.”

“We will continue to make our contribution to developing of the financial industry and economy of the country. And the clients will receive new possibilities – a broader product line, more advantageous conditions, extensive network of branches and ATMs across the country, advanced functionality – nothing but the best from the two banks, and the best that will be created by a new unified team,” added Rushan Hvesyuk.

Tamara Savoshchenko, the Chairman of the Board of PJSC “Ukrsotsbank”: “In a highly competitive banking industry, it is clear that the new leader in the market can only emerge as a result of the synergy of two strongest players, two teams of experts working towards the same goal.”

The deal structure assumes that UniCredit Group transfers its block of shares in PJSC “Ukrsotsbank” to ABH Holdings S.A. in exchange for issued shares equal to 9.9% stake in ABHH after the deal closing.

 

Additional information:

Alfa-Bank Ukraine is a large Ukrainian commercial bank with international capital, forming a part of private investment holding company ABH Holdings S.A. (ABHH) headquartered in Luxembourg. According to the NBU classification the bank falls within the category of banks with foreign capital. ABHH holding company has investments in a number of banking groups operating in Europe and the CIS area, specifically in Ukraine, Russia, Kazakhstan, Belarus, and the Netherlands.

ABHH’s owners include Mikhaіl Fridman – 36.47%, German Khan – 23.27% (both with Israeli citizenship), Aleksei Kuzmichev – 18.12%, Petr Aven – 13.76%, Andrei Kosogov – 4.08% (all three with Russian citizenship), as well as The Mark Foundation for Cancer Research – 4.30%.

Official website of Alfa-Bank Ukraine: www.alfabank.ua

UniCredit Bank (PJSC “Ukrsotsbank”) is one of the largest universal banks of Ukraine, offering its individual and corporate clients a full range of services. The renovated UniCredit Bank was created in December 2013 through integration of two Ukrainian assets of UniCredit Group, which has been operating on the local market since 1997.

UniCredit is a leading European commercial bank spanning over 50 markets and 17 European countries.

Official website of UniCredit Bank (PJSC “Ukrsotsbank”): www.unicredit.ua

 

News 12 October 2016

The National Bank of Ukraine approved the deal between ABH Holdings S.A. and UniCredit Group

UniCredit Group logo

Press release

The National Bank of Ukraine (NBU) approved the deal between banking groups ABH Holdings S.A. (ABHH, Luxembourg) and UniCredit Group (UCG, Italy). This is stated in the decision of the NBU Committee on Oversight and Regulation of Banks.

"The National Bank of Ukraine welcomes the first big deal in the field of M&A in the banking sector in recent years. The main priority for the regulator is the additionally capitalized and stable banking system, so the fact that ABH Holdings S.A. shareholders confirmed the fulfillment of all commitments assumed by both banks after diagnostics is important for us. We hope that the combination of competencies of the two international financial groups will promote the development of the banking service market in Ukraine," commented Valeria O. Gontareva, the Chairman of the National Bank of Ukraine, in her official report.

"We are quite enthusiastic about the positive decision of the NBU, which allows the shareholders of ABH Holdings and UniCredit Group, two international banking groups operating in Ukraine, to complete this strategic transaction in the near future. We believe this will contribute to a further development and consolidation of the financial sector conducted by the regulator, and restore confidence in the banking system as a whole and the economy of the country, said Rushan Khvesyuk, Managing Director of Alfa-Bank Ukraine. We will continue implementing the strategic plans of our shareholders on development of a highly competitive, technological and reliable leading bank, offering a full range of services to all categories of customers with a single and a strong team of professionals on the platform of the two banks."

We’d like to recall that in September, the Antimonopoly Committee of Ukraine authorized the concentration of ABH Holdings S.A. (ABHH) and UniCredit Group (UCG), having noted the positive effects of this deal for the whole banking sector, and, in particular, the banking service consumers.

"We are very grateful to the National Bank for efficiency in making such an important decision. The Ukrainian banking system is getting stronger, and the regulator plays an important role in it. Now, another top-level player will appear in this sector, which will become a serious competitor in the market. We have a lot of tasks and ambitious plans, and already in the near future we expect to hold a general meeting of shareholders, after which the deal closing will be officially announced," said Tamara Savoshchenko, Board Chairman of Ukrsotsbank.

In January this year, the investment holding company ABH Holdings S.A., which indirectly holds 100% shares of Alfa-Bank Ukraine, and international financial group UniCredit Group announced the signing of an agreement, in which UniCredit Group in exchange for a minority stake in ABHH in the amount of 9.9%, will transfer 99.8% shares in Ukrsotsbank PJSC to ABH Holdings S.A. as a holding company.

 

Information on ABH Holdings S.A.

ABH Holdings S.A. is a privately owned Luxembourg-based conglomerate focused on utilizing its financial and intellectual resources, management and investment expertise to manage value-driven investments in the global banking sector. ABHH stands as the parent entity of the group of companies (collectively the Alfa Banking Group) that is involved in banking and financial services in the Russian Federation, the Netherlands, the United Kingdom, Ukraine, Kazakhstan, Cyprus, and Belarus. ABHH’s subsidiaries collectively have the branch network consisting of 924 offices employing almost 30,000 people who serve over 14 million clients.

 

News 04 March 2016

Acquisition of ZUNO from Raiffeisen Bank International AG will not be concluded

Press release

The acquisition of Raiffeisen Bank International’s (RBI) direct bank ZUNO BANK AG by the Alfa Banking Group, as announced in September 2015, will not be concluded.

The sale and purchase agreement was not completed before expiration of the long stop date as several condition precedents on both sides were not fulfilled.

The SPA was terminated by ABH Holdings S.A. on the 29th February 2016.

For further information please contact 
Pavel Nazariyan, Managing Director of ABH Holdings S.A.

 

Information on ABH Holdings S.A.

ABH Holdings S.A. is a privately owned Luxembourg-based conglomerate focused on utilizing its financial and intellectual resources, management and investment expertise to manage value-driven investments in the global banking sector. ABHH stands as the parent entity of the group of companies (collectively the Alfa Banking Group) that is involved in banking and financial services in the Russian Federation, the Netherlands, the United Kingdom, Ukraine, Kazakhstan, Cyprus, and Belarus. ABHH’s subsidiaries collectively have the branch network consisting of 924 offices employing almost 30,000 people who serve over 14 million clients.

 

News 28 January 2016

Bloomberg ranks Alfa-Bank as the top bookrunner among Russian banks

Alfa-Bank has been ranked as the largest bookrunner among Russian banks and one of the largest among global players in the CIS in 2015.

The bank jumped up six positions in Bloomberg’s ranking, overtaking JP Morgan, Citi, Raiffeisen, BNP Paribas, and Sberbank CIB.

This achievement is partly a result of the five transactions the bank closed in the region for syndicated lending to borrowers. The total amount of the transactions exceeded USD 500m.

Alfa-Bank’s market share also grew by 5% in 2015.

Alexey Chirkizyanov, Alfa-Bank’s Debt Capital Branch Director, said: “In 2015, Alfa-Bank increased its share of the syndicated lending market thanks to the team’s expertise and effective interaction with the market makers and key clients.”

Source

Alfa-Bank