BoC gets revised offer to offload Ukraine unit

Bank of Cyprus said on Monday that it is looking “positively” at a revised offer to sell its loss-making PJSC Ukrainian unit to Russia’s Alfa Group as part of a restructuring drive.

In January, BoC, the island’s largest lender, said it had agreed to sell its 99.77 percent stake in the subsidiary to ABH Ukraine, which is part of Alfa Group, for 225 million euros. But Cypriot media reported the Russians are now offering 10 percent less than the original figure due to the worsening political and economic crisis in Ukraine.

“Bank of Cyprus announces that a revised consideration has been offered by the Alfa Group that is viewed positively by the board of the directors,” said BoC.

“The sale is expected to be finalized in the near future and is subject to approvals from the relevant regulatory authorities,” it said in Monday’s statement.

The sale is part of the liquidity-strapped group’s strategy of focusing on core businesses and markets, and disposing of other operations.

“Upon the completion of the sale, the bank will issue an announcement providing information as to the financial impact of this transaction,” said BoC. [AFP]