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Volksbanken to sell its east European arm to Russia's Sberbank

Autor: mses
VIENNA, July 15 (Hina) - Austria's Volksbanken (OeVAG) on Thursday signed an agreement with Russia's Sberbank on the sale of its eastern European arm VBI to the Russian bank, but this transaction will probably not help the Austrian bank to pass Europe's bank "stress test", the Austrian APA news agency has reported.

Sberbank will thus acquire Volksbanken International members, including the Volksbank operating in Croatia. Only the Romanian branch is exempted from this transaction, the OeVAG reported.

Oesterreichische Volksbanken holds a 51% in the VBI, and the rest is held in by DZ Bank/WGZ Bank and French Banque Populaire Caisse d'Epargne, each having 24.5% interest.

Apart from Croatia and Romania, VBI operates in Slovakia, the Czech Republic, Hungary, Slovenia, Bosnia and Herzegovina, Serbia and Ukraine.

The value of the transaction, likely to be completed by the end of this year, has not been made public, but according to two sources acquainted with the deal, Sberbank will pay EUR 700 million for VBI.

(Hina) ms

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