Factbox-Companies sell their businesses in Russia -Breaking
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© Reuters. FILEPHOTO: This is a woman who enters the LPP Polish Fashion Retailer’s Reserved Shop in Warsaw (Poland), September 4, 2020. REUTERS/Kacper Pempel/File Photo(Reuters). Several Western companies agreed to sell Russian assets, or give them to local managers in order to meet sanctions for the Ukraine conflict. They also need to deal with Kremlin threats to foreign-owned assets.
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
British car distributor stated that it agreed to sell the Russian operation to local management. This sale will lead to a remarkable non-cash loss of approximately 240 million pounds ($300,000,000).
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 stated it would write down 3.1 billion euro, including a 2 billion Euro hit on Rosbank’s book value as well as the remainder linked to the reverse of rouble convert reserves.
OTP BANK
OTP Bank of Hungary is Central Europe’s most independent lender. Chief Executive Sandor Csanyi announced on April 27 that the Ukrainian government is putting pressure on OTP Bank to sell its Russian division.
FOOD & BEVERAGES
AB INBEV
Brewer InBev Efes announced that on April 22, it will sell its non-controlling share in Russian 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 has purchased Russian assets from the Finnish dairy farmer. The sale was made after Russian authorities threatened to take over its Russian operation. Valio claimed that the transaction would go into effect immediately, but didn’t give any value.
TOBACCO
BAT (LON)
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 nationalise 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
According to the Japanese company, it had announced that they were considering selling their Russian operations on April 28, after having suspended investment and marketing activities there last month.
OTHERS
BRUNEL INTERNATIONAL
According to the Dutch employment service company, the Dutch are in process of selling Russia activities to local managers.
FLUGGER GROUP
Danish paint producer, Dania Paints stated on April 8 that it was initiating the sale of its Russian- and Belarusian subsidiaries. It also took a 115million Danish crown writedown.
HENKEL
German consumer goods giant, the chief executive said that the company could sell or stop its Russia operations on April 29. On April 19, it announced that Russia would be its exit country.
HUHTAMAKI OYJ
Finnish food packaging giant, Finnish Food Packaging Company (Finland), announced that on April 29, it decided to start the Russian divestiture process.
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 announced on April 28 that it had decided to sell Russia’s business.
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.
YIT
Etalon Group Plc has reached an agreement for the Finnish builder to sell Russia’s operations. It is estimated that it will be worth approximately 50 million euros (or $52.69 million). YIT stated that it will report an impairment of approximately 150 million euro in its quarter-end income statement as a result.
($1 = 0.9489 euros)
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