UniCredit Bank is interested in acquiring a UAE-based enterprise.
Here's the deal:
Three Emirati firms, Asas Capital, Mada Capital, and Inweasta, are eyeing the acquisition of UniCredit Bank's Russian arm. It's no secret anymore, thanks to Reuters spilling the beans. These UAE-based corporations are planning to form a specialized company and hook up with Inweasta, an investment firm already operating in Russia.
According to a document submitted to the Italian Ministry of Finance, these potential buyers are willing to acquire UniCredit Bank's Russian business at a whopping 60% discount from its market value. That's a bargain, aren't you thinking?
But hey, let's not forget the Alfa Group consortium. Although they haven't confirmed it, some banking insiders tell Kommersant that one of the Emirati funds is linked to the Alfa Group, with company A1 being involved. The catch? Alfa Bank, the group's main asset, can't buy "UniCredit" because it's under EU sanctions.
Inweasta isn't exactly a newbie in this game. Back in 2024, it acquired the Russian insurance business of the Czech group PPF - PPF Life Insurance - with the nod from the CB and the government commission for monitoring foreign investment. The group, which operates in 12 countries and manages assets worth over $1 billion, has experience in buying Russian subsidiaries of European structures.
Now, here's the kicker. Western companies can't sell Russian assets at their market value. DK.RU reminds us that in October 2024, the Ministry of Finance raised the discount for selling foreign assets from 50% to 60%, meaning they can only be sold for 40% of their market value. Plus, the "exit tax" increased from 15% to 25%. So, if a foreign investor wants to sell, they'll be lucky to receive 40% of their business' value. Yikes!
Fun fact: UniCreditbank has been operating in Russia since 1989. Although the European Central Bank pushed European banks to leave the Russian market, this bank remains profitable. Its profit in ruble equivalent for 2024 was 52.1 billion rubles, compared to 56.5 billion in 2022.
Still, European financial sector representatives are eager to get a piece of the Russian market. Anatoly Aksakov, head of the State Duma's Financial Market Committee, mentioned that representatives of foreign businesses might return to the Russian market if relations between Russia and the West improve. Let's wait and see!
Before 2022, several foreign banks, such as Raiffeisenbank (Austria), Rosbank (France), Unicreditbank (Italy), Citibank (USA), Home Bank (Czech Republic), and OTP Bank (Hungary), operated in the country. As of now, only Raiffeisenbank and Unicreditbank are fully operational, and both are listed among the systemically important credit organizations formed by the Central Bank, according to DK.RU. Better luck next time, other foreign banks!
The UAE-based corporations, Asas Capital, Mada Capital, and Inweasta, are planning to enter the Russian market by acquiring UniCredit Bank's Russian arm, with intentions to form a specialized company and partner with Inweasta, an investment firm already operating in Russia. In the business of finance, these potential buyers are offering a 60% discount for the acquisition, as per a document submitted to the Italian Ministry of Finance.
