HSBC's Russian unit sale could see discount as high as 90%, Frank Media reports
Reuters
Published Mar 21, 2024 16:06
MOSCOW (Reuters) - HSBC (LON:HSBA) may receive just 2 billion roubles ($21.77 million) from selling its Russian unit to Expobank, Russian financial news outlet Frank Media reported on Thursday, citing sources, in a transaction that would represent a discount of about 90%.
Russian President Vladimir Putin gave approval last month for HSBC's asset sale to privately-owned Expobank to go ahead. HSBC said in June 2022 that it had agreed to sell a 100% stake in the unit, HSBC Bank (RR) LLC, to Expobank.
Frank Media, citing two financial market sources, said the size of the discount could be a record for a deal of this kind.
Expobank declined to comment. HSBC declined to comment.
Reuters reported last August that Russia was demanding bigger discounts on some foreign companies' exits. Moscow has steadily tightened exit requirements since Western companies started leaving soon after Moscow began what it calls a "special military operation" in Ukraine in February 2022. Executives say navigating the rules is becoming harder.
($1 = 91.8705 roubles)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.