Kardan NV (AEX: KARD; TASE: KRNV) is reducing its exposure to the Russian financial market. The company's partner in Russian bank SovCom, which Kardan indirectly owns a 61.4% stake, notified Kardan that it wants to acquire 19% of SovCom for 39 million euros.
SovCom is Kardan's only investment in Russia's financial sector.
When the sale is completed, Kardan subsidiary TBIF Financial Services BV, which currently owns 69% of SovCom and the partner, SovCom Capital Partners, will own the bank in equal shares. The partner has until September 3 to exercise the option.
Exercise of the option and the cost of the shares purchased will be subject to market and other conditions, including approval of the Russian regulator.
The current price gives SovCom a company value of 205.3 million euros, and Kardan will record a capital gain of euro 22 million euros, based on its last financial report and the value listed in TBIF's books.
Published by Globes [online], Israel business news - www.globes-online.com - on April 11, 2010
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