KBC Group NV (KBCSF.PK, KBCSY.PK) Monday announced plans to sell its Russian banking subsidiary Absolut Bank to a group of Russian companies, for a consideration of 0.3 billion euros.
KBC will also consider repayment of all its funding that is currently placed within Absolut Bank for the amount of 0.7 billion euros.
The divestment will allow KBC to focus on retail customers, small and medium-sized enterprises and mid-caps, in its core markets of Belgium and Central and Eastern Europe, while reducing risk-weighted assets.
The Bank is being sold to a group which manage the assets of BLAGOSOSTOYANIE, the second-largest non-state pension fund in Russia. Absolut Bank's brand name, staff and management will be maintained in their entirety.
The transaction is expected to close in the second quarter of 2013, subject to regulatory approval.
For comments and feedback: editorial@rttnews.com