Bank of Cyprus Public Company Ltd announced that it has signed an agreement to sell 100% of the share capital of Leadbank LLC (former Bank Kypra LLC), one of its two Russian banking subsidiaries, to CJSC Renaissance Capital.
The sale will be at a premium to the net asset value of Leadbank LLC. It is noted that as at 31 December 2009, Leadbank LLC had net assets of around EUR11.7 mln. Τhe transaction will not have any significant financial or operational impact on the Group.
The transaction is subject to the satisfaction of certain conditions, including approval by the Central Bank of Russia.
Leadbank LLC was established in April 2007 as Bank Kypra LLC and operates through one branch in Moscow.
During 2009, Bank of Cyprus completed the operational merger of its Russian operations by selling the loan portfolio of its 100% subsidiary Leadbank LLC to its 80% subsidiary Uniastrum Bank, acquired in October 2008. As a result the Group's strategy and operations in Russia are carried out through its subsidiary Uniastrum Bank which operates a network of 220 branches throughout the Russian Federation.