Italian UniCredit will sell the remaining 20% to Turkish Yapi Kredi Bank by March 2022, completing its exit from the third largest Turkish bank, which started two years ago.
Under the terms of the deal, Turkish Koc Holdings will buy an 18% stake in Yapi Kredi for 300m euros, Italy’s second-largest bank said in a statement.
The remaining 2% will be sold on the market.
The transaction will have a positive effect (low single digits) on the best quality funds of UniCredit, a key measure of financial strength.
At the same time, the bank will incur an extraordinary charge of 1.6 billion euros in quarterly profits, due to the monetary reserves associated with the percentage.
The accounting charge has no effect on UniCredit’s capital and does not affect its underlying net income.
“The agreement is consistent with the group’s strategy of exiting sectors with low capital returns, high profit volatility and no active control,” said BofA analyst Alberto Cordara.
The company’s share increased by 1.4%. The sale is scheduled for the first quarter of 2022.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
