Dexia finalises sale of Turkish banking unit DenizBank to Sberbank, for $3.88 bn
29 September 2012
Bailed out Franco-Belgian bank Dexia yesterday said that it had finalised the sale of its Turkish banking unit DenizBank to Russian state-controlled Sberbank, for around €3.02 billion ($3.88 billion).
''The approval of all the regulatory authorities concerned was obtained prior to the closing of the sale, which confirms the major progress made in implementing the plan for the orderly resolution of the Dexia Group,'' said the Brussels-based lender in a statement.
The sale agreement includes all of DenizBank's subsidiaries in Turkey, Austria and Russia for €2.79 billion. Sberbank will also pay for any increase in DenizBank's net asset value between 1 January and 28 September capped at €23 million, taking the total deal value to €3.02 billion.
Dexia said that the sale is anticipated to generate a loss of €744 million, due to cumulative translation adjustments booked in other comprehensive income that will be booked in its third quarter 2012 accounts.
The impact of the sale on the lender's core tier 1 and tier 1 capital would rise by €638 million and result in a reduction of weighted risks by €21.6 billion.
The sale proceeds will result in a decrease of Dexia's balance sheet by ca. €18 billion.