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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 sell or transfer their Russian assets to local managers in order to meet sanctions on the Ukraine conflict. They also need to deal with Kremlin threats that assets owned by foreign countries could be seized.

This is part of a larger corporate exodus. It will likely raise concern that Russian companies and institutions may be buying valuable assets at a bargain price.

Here is a listing of Russian companies by industry that have made deals to sell in Russia.

AUTOMAKERS

INCHCAPE

According to the British distributor of cars, it has agreed to transfer its Russian operations to local management. This sale will lead to a remarkable non-cash loss of approximately 240 million pounds ($294million).

RENAULT A French carmaker stated on May 16 that it was selling its majority stake, Avtovaz Russia’s biggest, to the Russian Central Research and Development Automobile and Engine Institute. The stake has a six-year option for repurchase.

Renault (EPA) Also, it was stated that the 100% share in Renault Russia would go to Moscow.

Russia stated on April 27th that Renault would sell its stake of 67.69% in Avtovaz for symbolic money equal to one rouble.

BANKS

SOCIETE GENERAL The French lender said that it expected to complete the Rosbank sale to Russia’s Interros Capital in the “coming weeks.”

The sale was announced by Rosbank on April 11. It also stated that it would write off 3.0 billion euros (3.2 billion). This includes a 2Billion-euro hit to Rosbank’s books value, and any other losses related to the reverse of rouble convert reserves.

ELECTRICAL COMPONENTS & EQUIPMENT

SCHNEIDER ELECTRIC

French manufacturer of electrical equipment will be selling its Russian and Belarus operations to local management. This was announced by the company on April 27th, as it signed an intent letter with designated buyers.

It will book off 300 million euros ($312million) of net value. Additionally, it will reverse a currency translation that was estimated to have cost 120 million Euros.

ENERGY

SHELL

According to the British energy and petroleum giant, it will sell Russia’s retail and lubricants business. The deal was announced by both companies on May 12. This deal also includes the Torzhok Lubricants Blending Plant and 411 retail outlets. Shell (LON.) declined to comment on the amount of the deal.

FOOD & BEVERAGES

AB INBEV

On April 22, the brewer announced that it was selling its controlling stake in Russian joint venture AB InBev Efes. A $1.1 billion impairment charge will be taken in the first quarter following the divestiture. Joint venture includes 11 Russian breweries and three Ukrainian breweries.

FAZER

Finnish bakery and foodservice company, Fazer, announced that on April 29, it would sell its Russian division to Moscow’s Kolomenskij Bakery and Confectionery Holding. Fazer didn’t disclose the amount of the deal.

PAULIG

After being mentioned in Russia as an example foreign company which could be nationalized, the privately-owned Finnish food and beverage company announced that it sold Russia operations to Vikas Soi on May 5.

According to the company, the sale includes Paulig Rus LLC, Paulig’s operations and Paulig’s coffee roastery at Tver. But not Paulig, which will disappear in Russia in the coming months.

RAISIO

On April 29, the Finnish food processor company announced that it would sell its Russian consumer business to Copacker Agro Ltd. The price was approximately 1.5 million euros ($1.6million). Raisio announced that the transaction would result in an estimated impairment loss at 2.9million euros in its first quarter earnings before interest taxes.

VALIO

GK Velkom has purchased Russian assets from the Finnish dairy farmer. The sale was made after Russian authorities threatened to take over its Russian operation. Valio stated that the transaction would be effective immediately, but did not provide any financial information.

MINIMING

AMUR MINERALS COMMUNITY

London-listed Russian mining company, Kun-Manie Mining Company announced May 9 that they would be selling their main Kun-Manie Project for $105 Million. They also agreed to transfer to buyers all Kun-Manie loan proceeds to Amur for $30,000,000.

KINROSS

Kinross Gold (NYSE) Corp sold its Russian assets and cash to the Highland Gold Mining Group of Companies for $680 Million. The announcement was made by the Canadian gold miner on April 5th, nearly a month following the suspension of its operations.

OTHERS

AUTHENTIC BRANDS GROUP

Kommersant newspaper reported that the Russian operations of Authentic brands Group’s Reebook were taken over by Turkey’s FLO retailing. According to Kommersant analysts, the deal is worth up 1.5 billion rubles ($24.26 millions).

BRUNEL INTERNATIONAL

It said that the Dutch Employment Services Company is currently selling Russian activities to local management.

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 ($16.1 Million).

IMPERIAL BRANDS

After talks in March with an unknown third party, the British tobacco company announced that it had transferred its Russian business to Russian investors on April 20.

MAERSK

It announced that the Danish shipping firm has identified potential buyers for its stake of Global Ports Investments at 30.75%. This company operates Russian ports.

STORA ENSO

It announced on May 16 that the Finnish forest company has closed its Russian exit with three plants of corrugated packaging sold to local management.

Stora reported that at the end of April it had announced it would sell its Russian sawmills as well as their forest operations to local management. It also suffered a loss in excess 130 million Euro ($136 Million).

YIT

Etalon PLC has agreed to sell its Russian operations for approximately 50 million Euros ($52 million). YIT stated that it will report an impairment of approximately 150 million euro in its quarter-end income statement as a result.

($1 = 0.8172 pounds)

($1 = 0.9616 euros)

($1 = 7.1521 Danish crowns)

($1 = 61.8340 roubles)

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