VBAG and Sberbank Agree on Sale of VBI

Published: July 15, 2011; 06:24 · (Vindobona)

After several months of negotiations the two banks have agreed on the main conditions of the sale of Volksbank International. The deal will be closed by the end of this year.

VBAG and Sberbank Agree on Sale of VBI / Picture: © Wikipedia / MrPanyGoff

Volksbanken Group (VBAG) and Sberbank have come to an agreement: Volksbank International (VBI), VBAG’s Eastern European subsidiary, will be sold to the Russian bank. VBAG on Thursday announced that the parties reached a commercial understanding on the major terms of the sale. The banks signed a term sheet which specifies the conditions as well as the price of the deal.

However, they agreed on a confidentiality clause so that details of the transaction have not yet been published. Informed persons suggested a sale price of € 590m. Loss-making Volksbank Romania will not be part of the envisaged deal, VBAG said. Both parties announced that they aim to close the deal by the end of this year.

The management of VBAG had been in negotiations with their colleagues of Sberbank for months. Under the pressure of the bank stress test they have now come to an early agreement. The results of the Europe-wide test will be published on Friday. The sale of VBI as part of VBAG’s restructuring plan will not influence the final result as only measures implemented before April 30 were taken into account. VBAG is thus expected to fail the test.