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09 February 2020

UniCredit cuts its Yapi ve Kredi Bankasi stake further

An economic recession in Turkey and the free fall of the lira currency forced UniCredit to write down the asset by EUR 846 million back in 2018

UniCredit said that the sale had yielded around EUR 440 million/Bloomberg

by Bloomberg

UniCredit, Italy’s biggest bank by assets, has announced the placement of a 12 per cent stake in Turkey’s Yapi ve Kredi Bankasi, a further step in the bank’s strategy to divest non-strategic businesses.

In a statement, UniCredit said that the transaction is part of the bank’s on-going strategy to simplify its shareholdings and to optimise its capital allocation.

Bloomberg reported that Koc Holding and UniCredit late last year unwound a joint venture that controlled an 80 per cent stake in Yapi ve Kredi Bankasi, with the Turkish conglomerate buying nine per cent of the bank from its partner.

The unwinding of the joint venture handed UniCredit a direct 31.9 per cent stake in Yapi Kredi which would fall to 20 per cent after the share placement.

Similarly, Koc Holding increased its ownership of Turkey’s fourth-largest listed bank by assets to 49.9 per cent under the November 2019 deal that ended a partnership with UniCredit. 

UniCredit said that the sale had yielded around EUR 440 million. The Italian lender added that the transaction would generate a negative EUR 0.82 billion impact on Q1 2020 earnings partly due to the difference between the market value of the stake and its book value.


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