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UniCredit agrees to cut stake in Turkey’s Yapi Kredi to below 32pc

UniCredit agrees to cut stake in Turkey’s Yapi Kredi to below 32pc

MILAN, Dec 1: Italy’s UniCredit said on Saturday it had reached a deal with Turkey’s Koc Holding to cut its stake in Yapi Kredi Bank to below 32 per cent as part of moves to simplify its shareholding structure and bolster capital, reports Reutes. Yapi Kredi Bank is Turkey’s third largest bank. Under the deal Koc Holding will buy UniCredit’s 50 per cent stake in Koc Financial Services (KFS), the joint venture which controls Yapi Kredi, to become the JV’s sole owner. At the same time KFS will sell 31.93 per cent of Yapi Kredi to UniCredit and 9.02 per cent to Koc Holding. KFS currently owns almost 82 per cent of Yapi Kredi. Sources told Reuters earlier this month UniCredit had struck a deal to reduce its exposure to the Turkish bank, in a move seen as a step to its exit from the country, which has been mired in recession. UniCredit, which will book charges of around 1 billion euros ($1.1 billion), said the overall impact of the deal for the bank would be virtually nil in terms of cash. It said it expected its group CET 1 ratio - an indicator of financial health - to be lifted by an overall mid-single-digit basis point. Completion of the transaction is expected in the first half of next year, UniCredit said. The deal is the latest move in a string of disposals that UniCredit’s boss Jean-Pierre Mustier has embarked upon since taking the helm of Italy’s biggest bank by assets in 2016. The bank is set to unveil a new business plan next Tuesday.

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