2023-12-19 20:44:54
Through its Russian subsidiary, Raiffeisen Bank International (RBI) wants to acquire the 27.8 percent stake in the construction group Strabag, which the Russian Strabag major shareholder Oleg Deripaska has put up for sale. The RBI announced on Tuesday evening that 1.5 billion euros would flow for a total of 28,500,000 Strabag shares. With the deal, RBI wants to further reduce its involvement in Russia.
However, the implementation of the acquisition still depends on several checks and approvals from the authorities.
The purchase of the share package would take place across several corners. As already reported, MKAO “Rasperia Trading Limited”, through which Oleg Deripaska holds his share in Strabag, is to be transferred to the Russian joint-stock company Iliadis JSC. If this sale is successful and Iliadis withstands a due diligence review by Raiffeisen, Raiffeisen Russia would then acquire the Strabag shares from Iliadis, a Raiffeisen spokesman told APA.
It would subsequently be planned for Raiffeisen Russia to transfer the shares to RBI in the form of a dividend in kind. The RBI would then retain the Strabag shares in the form of a long-term equity investment in Strabag. But this transaction also requires prior approval from the Russian authorities. If all checks and approvals are successful, the deal could be completed in the first quarter of 2024, the bank writes.
With the transaction, RBI wants to further reduce its exposure to Russia. After the deal, including Russia, the bank’s common equity Tier 1 capital ratio would fall from 16.5 to 16.4 percent. If the Russian business were excluded, the core capital ratio (14.4 percent) would increase by 120 basis points (to 15.6 percent). Regarding a general exit from Russia, the bank wrote that it would continue to work on a spin-off or sale of Raiffeisen Russia.
Strabag commented positively on Raiffeisen’s plans on Tuesday evening. It would be “in the interests of the company” if Deripaska or the MKAO Rasperia Trading Limited, which he controls, were to withdraw from Strabag as the owner, as the participation would be “associated with disadvantages for the company”. However, the deal needs to be closely examined under sanctions law.
Since Russia’s invasion of Ukraine, Strabag has tried to distance itself more and more from Deripaska. In the summer, shareholders at the general meeting voted unanimously to reduce Deripaska’s shareholding below the blocking minority of 25 percent. Deripaska is on the EU sanctions list and therefore does not receive any dividends from Strabag and cannot exercise voting rights on his shares.
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