Factbox-Companies sell their businesses in Russia -Breaking
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© Reuters. FILE PHOTO – A woman enters a Polish clothing retailer LPP brand. REUTERS/Kacper Pempel/File Photo(Reuters.) Several Western companies agreed to either sell Russian assets or give them to local managers to help comply with the sanctions against Ukraine and to respond to threats by the Kremlin about foreign-owned assets being seized.
These moves are part of an overall corporate exodus out of the country and are likely to raise concerns about Russian institutions buying up valuable assets in exchange for bargains.
The following is a list by sector of companies that announced plans to buy Russian businesses.
AUTOMAKERS
Russia announced on April 27 that the French automaker Renault will sell its 68% share in Russia’s largest carmaker Avtovaz and transfer it to an institute of automobile research for a symbolic 1 rouble.
INCHCAPE
According to the British distributor of cars, it has agreed to transfer its Russian operations to local management. It will cause a non-cash loss in excess of 240million pounds (300 million)
BANKS
SOCIETÉ GENERALE A French lender announced that it will sell Rosbank’s unit to Interros Capital. Interros Capital is a Russian-linked firm. SocGen claimed it would write off 3.0 billion euros. This includes a 2. billion-euro hit to Rosbank’s books value, and any other losses due to the conversion of the ruble.
OTP BANK
OTP Bank in Hungary, Central Europe’s biggest independent lender, has been under increasing pressure to sell its Russian business, chief executive Sandor Csanyi stated on April 27.
FOOD & BEVERAGES
AB INBEV
Brewer InBev Efes announced that on April 22 the company would dispose of its Russian non-controlling share in joint venture AB InBev Efes. This will lead to a $1.1billion impairment charge for the first quarter. There are 11 breweries within Russia, and three in Ukraine.
CARLSBERG
According to the Danish beermaker, it had announced on April 28 that it was closing its Russian business. Cees ‘t Hart, Chief Executive of the company said that there had been good progress in this area and that it was attracting “definitely” interested parties.
VALIO
GK Velkom purchased the Russian dairy business of Finnish producer Valio. This was in response to an earlier Russian threat to nationalize its Russian operations. Valio claimed that the transaction would go into effect immediately, but didn’t give any value.
TOBACCO
BAT
Russian cigarette producer is currently in negotiations to sell its Russian business to Russia’s SNS Group of Companies. This was after Moscow suggested that Russia could nationalize foreign companies who have left the country.
IMPERIAL BRANDS
Following talks with an unidentified party in March, the British Tobacco Group announced on April 20 that its Russian business would be transferred to Russian investors.
JAPAN TOBACCO
After suspending marketing and investment activities in Russia last month, the Japanese firm announced on April 28 that it is considering selling Russian operations.
OTHERS
FLUGGER GROUP
On April 8, the Danish paint manufacturer stated that it initiated sales of Russian and Belarusian businesses, taking a write-down of 115 million Danish crowns.
HYVE
British exhibitions company has offered to sell its Russian operations, citing customers warnings they will boycott any future events held in Russia. On April 6, the group stated that it was selling the business at 72 million pounds ($94million) due to operational and compliance problems.
KINROSS
Kinross Gold (NYSE:) Corp sold its Russian assets and cash to Highland Gold Mining Group of Companies for $680 Million. The announcement was made by the Canadian company on April 5, almost a month after it had suspended operations in Russia.
LPP
Polish clothing retailer LPP decided to sell its Russian business, it announced April 28.
SCHNEIDER ELECTRIC
French manufacturer of electrical equipment will be selling its Russian and Belarus operations to local management. The company announced this on April 27th, after it signed a letter stating that it was in agreement with designated buyers. The company will deduct up to 300 millions euros (319 million dollars) from its net value, and reverse the 120 million euro currency translation.
STORA ENSO
Finland’s Stora Enso has agreed to sell its Russian sawmills to local management. The group announced this on April 25, 2015.
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