The sale of Ukrsotsbank would cut some of the 18,200 jobs UniCredit intends to slash by 2018, Bloomberg reported.
UniCredit intends to cut costs and offload noncore assets as part of its strategic plan to avoid raising fresh capital, according to the Wall Street Journal.
The bank is aimed at generating €5.3bn in net profit in 2018.
UniCredit said that it will contribute its exposure in Ukrsotsbank to ABH Holdings in exchange for new shares representing a 9.9% stake in ABH Holdings after the transaction.
ABH Holdings is a privately owned Luxembourg-based holding company investing into several banking activities in the Commonwealth of Independent States, formed by the Republic of Belarus, the Russian Federation, and Ukraine.
According to UniCredit, the deal is expected to lead to an extraordinary charge of around €200m, as net result of the divestment.
The financial terms of the deal are not disclosed.
Subject to necessary regulatory approvals, the transaction is expected to be completed this year.
UniCredit employs over 147,000 employees in more than 8,500 branches in17 countries across the globe.
The bank’s key markets are Italy, Austria, Russia, Southern Germany and Bulgaria. It has investment banking divisions in New York, London, Hong Kong, Milan, Munich, Vienna, Budapest and Warsaw.
Image: UniCredit headquarters in Rome. Photo: courtesy of Blackcat / Wikipedia.
