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UniCredit to sell remaining stake in Turkey’s Yapi Kredi Bank by Q1 2022 -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The UniCredit logo is seen in Siena’s old centre, Italy. June 29, 2017. REUTERS/Stefano Rellandini

(Reuters] UniCredit stated Monday that its 20% remaining stake in Yapi Kredi Bank would be sold by March 2022. The move was made to optimize its asset allocations and reduce exposure to Turkey’s third-largest lender.

According to a statement, the Turkish lender Koc Holding has agreed to buy 18% of Yapi Kredi shares at 0.3 billion Euros ($346.62 Million).

After Koc Holdings and UniCredit had signed an agreement in 2019, the share sale is expected to take place in 2022’s first quarter. Both companies reached a deal with UniCredit to alter the ownership structure at Yapi Kredi. Previously, both had managed it through a joint venture.

Unicredit (MI) stated that the remaining 2% are likely to be traded in the market.

UniCredit held in indirect 40% of Yapi’s shares through this joint venture. However, unwinding of the JV handed UniCredit a direct 31.9% stake, of which 12% was sold in February 2020. https://reut.rs/31Jb6Db

UniCredit said that the deal would have an overall positive effect of low to mid single digits on the lender’s consolidated CET1 ratio. This measure is used by banks to evaluate their ability to resist financial distress and compare its capital to its risk-weighted asset.

($1 = 0.8655 euros)

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