11 December 2018
Alfa Group has neither planned nor plans to sell its banking assets in Russia
December 11, 2018
In light of recent media reports, alleging some negotiations on the sale of Alfa Group’s banking assets in the Russian Federation, we declare that this information bears no relation to reality. We categorically deny these rumors and the fact of any negotiations. No discussions of the kind have been or are being conducted with the market players.
Alfa Banking Group, comprising ABH Financial, AO “Alfa-Bank” and subsidiaries, over its history has shown positive dynamics in the key financial ratios and main business areas: the Bank is increasing its loan portfolio, the volume of borrowed funds, the interest and fee revenue, as well as the number of customers. Consistently implementing the development strategy, the Bank is boosting its share in the key market segments, along with improving operating efficiency and asset quality. The business volume increase is accompanied with a remarkable increment in profit, which testifies to an efficient business model chosen by the Bank.
We view the emerging rumors as an attempt to discredit the Bank’s shareholders and management. We have not planned and are not planning to sell Alfa-Bank.
20 June 2018
Alfa-Bank (Belarus) acquired the Home Credit Group's entity
ABH Holdings S.A., which indirectly owns 99,9% shares in Alfa-Bank (Belarus), and the International Group "Home Credit" announced closing of the deal to purchase 100% of shares in Open Joint Stock Company Non-banking Credit and Financial Organization "Home Credit".
This deal was previously approved by the National Bank of the Republic of Belarus and the Ministry of Antimonopoly Regulation and Trade of the Republic of Belarus.
In fact, this is the only M&A deal in the banking sector of the Republic of Belarus over the past few years. It is noteworthy that the deal was closed within 3 months.
The deal confirms ambitions of the Alfa Banking Group for the further growth of its banking business in Belarus. In 2016-2017, Alfa-Bank's active client base doubled, and this deal would give a significant impulse to its further growth.
Rafal Juszczak, CEO of Alfa-Bank (Belarus), noted: “This deal is an example of excellent Alfa-Bank's team work. We could not do it without a fast and efficient cooperation between Alfa-Bank, Home Credit, and the National Bank of the Republic of Belarus. We are sure that this M&A transaction is really a “win-win”: Home Credit could not go on with the same business model in Belarus, and we were happy to continue the banking journey of their customers with Alfa-Bank. This M&A will not change the strategic focus of Alfa-Bank in Belarus – we will continue our expansion in retail and mass business with a particular focus on mobile banking”.
Alfa-Bank (Belarus) is a Belarusian commercial bank with the international capital, being a part of the Luxembourg-based private investment holding company ABH Holdings S.A., which also has investments in a number of banking groups operating in Europe and the CIS, specifically in Ukraine, Belarus, Kazakhstan, Russia, and the Netherlands. Official website of Alfa-Bank (Belarus): www.alfabank.by
"Home Credit" is a subsidiary of the international Home Credit Group, which entered the Belarusian market in 2006. In July 2016, "Home Credit" became a Non-banking Credit and Financial Organization as the result of policy on transforming the business model in Belarus. Official website of the Home Credit Group: www.homecredit.net
16 November 2017
Changes in the shareholder structure of PJSC Alfa-Bank (Ukraine)
On 16 November 2017, the international investment foundation MSP Stiftung (Liechtenstein) became a shareholder of PJSC Alfa-Bank (Ukraine) having acquired 9.9% of its shares.
As a result, the Austrian banker Martin Schwedler will be appointed as the Supervisory Board Chairman of PJSC Alfa-Bank (Ukraine) after all necessary approvals with the Ukrainian regulator.
The shareholder structure of PJSC Alfa-Bank (Ukraine) has been expanded and now includes MSP Stiftung Foundation, established by Martin Schlaff, one of the leading Austrian businessmen with interests in financial sector and industrial production. MSP Stiftung co-owns Sigma Kreditbank AG (Liechtenstein) which specializes in retail lending. It also owns around 25% in RHI Magnesita NV, a global producer of high-quality refractory products used in high-temperature industrial processes.
Entry of the new investor into the shareholder structure of PJSC Alfa-Bank (Ukraine) will further strengthen the Bank’s growth strategy. The Bank will continue to increase its presence in all key business segments as the universal financial institution with a unique international expertise and focus on development of online services for its clients.
Adding leading international professionals to the team is one of the components of Alfa-Bank (Ukraine) and the ABHH banking group growth strategy. This will enable the Bank to not only implement advanced international practices, but also increase its corporate governance standards. The decision of the shareholders to appoint Martin Schwedler as the Supervisory Board Chairman of PJSC Alfa-Bank (Ukraine) clearly confirms this strategy.
Martin Schwedler has an extensive experience in corporate finance and investment banking having served in such companies as GE Capital, Raiffeisen Investment AG and Lazard Frères Gestion. Martin Schwedler earned the Master of Laws degree from the University of Innsbruck. Martin Schwedler will take the position of the Supervisory Board Chairman after the approval of the National Bank of Ukraine, while Petr Aven, currently holding this position, will remain on the Supervisory Board of the financial institution.
The affiliation of a new shareholder with Alfa-Bank (Ukraine) changed the structure of the Banks’ ownership. Accordingly, the ultimate major shareholders of PJSC Alfa-Bank (Ukraine) are MSP Stiftung - 9.9%, Mikhail Fridman - 29.62%, German Khan - 18.89%, Alexey Kuzmichev - 14.7%, and Petr Aven - 11.17%. The transaction was carried out in full compliance with the legislative and regulatory requirements of Ukraine.
Martin Schlaff, Founder of MSP Stiftung, noted: "The board of MSP Stiftung has been closely looking at financial assets in the Eastern Europe, specifically in Ukraine for some time. I am pleased that they have managed to partner up with ABH Holdings S.A. I trust that MSP Stiftung and ABH Holdings S.A. together will meet the challenges of creating the best bank, the bank-leader in Ukraine. MSP Stiftung will certainly contribute its knowledge, experience, and know-how to reach this goal. This will help strengthening MSP Stiftung for future generations."
Petr Aven, Chairman of the Board of Directors of ABH Holdings S.A., stressed: “We are pleased to welcome our new partner MSP Stiftung as a shareholder of Alfa-Bank (Ukraine). Moreover, our further plans include the expansion of MSP Stiftung’s participation in PJSC Alfa-Bank (Ukraine) to 24.9% of shares. Cooperation with one of the largest investment funds of the Central Europe will strengthen our position on the Ukrainian market and will open new business opportunities for ABH Holdings S.A. in the European business community”.
Alfa-Bank (Ukraine) is a large Ukrainian commercial bank with the international capital, being a part of the Luxembourg-based private investment holding company ABH Holdings S.A., which also has investments in a number of banking groups operating in Europe and the CIS, specifically in Ukraine, Belarus, Kazakhstan, Russia, and the Netherlands. According to the National Bank of Ukraine classification, Alfa-Bank (Ukraine) falls within the category of banks with foreign capital.
Official website of Alfa-Bank (Ukraine): www.alfabank.ua
31 October 2016
ABH Holdings S.A., banking group of Alfa Group Consortium, and international group UniCredit Group closed the deal on exchange of assets
ABH Holdings S.A. and UniCredit Group announced the closing of the deal to transfer 99.9 % of shares in Public Joint Stock Company “Ukrsotsbank” (UCG asset in Ukraine) in exchange for a minority 9.9% stake in ABHH.
October 31, 2016, Kyiv, Ukraine – Today, ABH Holdings S.A. (ABHH) that indirectly owns 100 % shares in Alfa-Bank Ukraine (through the holding company ABH Ukraine Limited (ABHU)) and UniCredit Group (UCG) announced the closing of the deal to transfer 99.9% of shares in Public Joint Stock Company “Ukrsotsbank” (UCG asset in Ukraine) in exchange for a minority 9.9% stake in ABHH.
As a result of this deal, UniCredit Group, the Italian banking group spanning over 17 countries, became a minority shareholder of ABH Holdings S.A., an investment holding company of Alfa Group headquartered in Luxembourg. Also, Andrea Maffezzoni, Head of Strategy, Business Development and M&A at UniCredit, will join the Board of Directors of ABHH.
Commenting on the closing of the deal, Mikhaіl Fridman, the Chairman of the Supervisory Board of international consortium Alfa Group, said, “We welcome our new partner UniCredit Group as a shareholder of our banking group. This partnership will allow us to step up in the development of ABHH group in all the countries in which the group operates, combining our expertise, years of experience and strengths of our teams.”
“This deal will undoubtedly result in the emergence in Ukraine of a strong player acting on the unified platform of two banks. We are going to compete for the leadership in the Ukrainian market, first and utmost, by upgrading the level of technology, increasing efficiency, improving quality of service for the clients, as well as reducing the cost of services and expanding their range,” added Mikhaіl Fridman regarding the plans for ABHH banking group’s development in Ukraine.
This deal has been carried out in full compliance with the laws and regulations. On September 8, 2016, the Antimonopoly Committee of Ukraine authorised concentration of ABHH having noted the positive effects of this concentration for the whole banking sector and that the banking system of Ukraine will receive a large and highly competitive bank, which will have a positive effect on its stability. In addition, the clients will get access to better products and services.
Also, on October 12, 2016, the National Bank of Ukraine has approved the deal between ABHH and UCG welcoming the first big M&A deal in the banking industry in recent years and expecting that the combination of competencies of the two international financial groups will promote the development of the banking service market in Ukraine.
Rushan Hvesyuk, the Chief Executive Officer of Alfa-Bank Ukraine, noted, “This is a unique deal in the financial industry of Ukraine. Ukrsotsbank and Alfa-Bank Ukraine have a long history of successful operation in the banking market and are rated among TOP 10. We have been through a few very difficult periods together with Ukraine and its economy. And now, as a unified team and with the support of our shareholders from two international banking groups, we will work alongside to create a new leader of the country’s banking market.”
“We will continue to make our contribution to developing of the financial industry and economy of the country. And the clients will receive new possibilities – a broader product line, more advantageous conditions, extensive network of branches and ATMs across the country, advanced functionality – nothing but the best from the two banks, and the best that will be created by a new unified team,” added Rushan Hvesyuk.
Tamara Savoshchenko, the Chairman of the Board of PJSC “Ukrsotsbank”: “In a highly competitive banking industry, it is clear that the new leader in the market can only emerge as a result of the synergy of two strongest players, two teams of experts working towards the same goal.”
The deal structure assumes that UniCredit Group transfers its block of shares in PJSC “Ukrsotsbank” to ABH Holdings S.A. in exchange for issued shares equal to 9.9% stake in ABHH after the deal closing.
Alfa-Bank Ukraine is a large Ukrainian commercial bank with international capital, forming a part of private investment holding company ABH Holdings S.A. (ABHH) headquartered in Luxembourg. According to the NBU classification the bank falls within the category of banks with foreign capital. ABHH holding company has investments in a number of banking groups operating in Europe and the CIS area, specifically in Ukraine, Russia, Kazakhstan, Belarus, and the Netherlands.
ABHH’s owners include Mikhaіl Fridman – 36.47%, German Khan – 23.27% (both with Israeli citizenship), Aleksei Kuzmichev – 18.12%, Petr Aven – 13.76%, Andrei Kosogov – 4.08% (all three with Russian citizenship), as well as The Mark Foundation for Cancer Research – 4.30%.
Official website of Alfa-Bank Ukraine: www.alfabank.ua
UniCredit Bank (PJSC “Ukrsotsbank”) is one of the largest universal banks of Ukraine, offering its individual and corporate clients a full range of services. The renovated UniCredit Bank was created in December 2013 through integration of two Ukrainian assets of UniCredit Group, which has been operating on the local market since 1997.
UniCredit is a leading European commercial bank spanning over 50 markets and 17 European countries.
Official website of UniCredit Bank (PJSC “Ukrsotsbank”): www.unicredit.ua