Factbox: Companies sell their businesses in Russia
17/06/2022 08:43
(Updates Kinross, LPP, PPF, YIT, adds Apator, Enel, Equinor,
Fortum, Oerlikon, Pizza Hut, Zurich Insurance)
June 17 (Reuters) - Some Western companies have agreed to
sell their Russian assets or hand them over to local managers as
they scramble to comply with sanctions over the Ukraine conflict
and deal with threats from the Kremlin that foreign-owned assets
may be seized.
The moves, part of a broader corporate exodus from the
country, are likely to stir concerns that Russian firms and
institutions are snapping up prized assets for a bargain.
Below is a list of firms by sector that have announced deals
to sell their businesses in Russia:
AUTOS
INCHCAPE INCH.L
The British car distributor said on April 28 it had agreed
to sell its Russian business to local management for 76 million
euros ($79.9 million). It added the sale will result in an
exceptional non-cash loss before tax of about 240 million pounds
($295.2 million). urn:newsml:reuters.com:*:nL3N2WQ1IH
RENAULT RENA.PA
The French carmaker said on May 16 it would sell its
majority stake in Russia's biggest carmaker, Avtovaz
AVAZI_p.MM , to a Russian science institute reportedly for just
one rouble with a six-year option to buy it back. urn:newsml:reuters.com:*:nL5N2X80RL
Renault also said that 100% of the shares in Renault Russia
will go to the city of Moscow.
BANKS
PPF
The Czech investment group confirmed on May 31 it had sold
100% of its Russian banking assets, consumer lender the Home
Credit and Finance Bank and its subsidiaries, to a group of
investors led by Ivan Tyryshkin, following its announcement on
May 17. urn:newsml:reuters.com:*:nL2N2X90JC urn:newsml:reuters.com:*:nP7N2UX016
SOCIETE GENERALE SOGN.PA
The French bank said on May 18 it had closed the sale of its
Russian business Rosbank ROSB.MM to the Interros group, a firm
linked to Russian oligarch Vladimir Potanin. urn:newsml:reuters.com:*:nL2N2XA260
The sale will result in the bank taking a 3.2 billion-euro
($3.4 billion) net income hit.
ELECTRICAL COMPONENTS & EQUIPMENT
SCHNEIDER ELECTRIC SCHN.PA
The French electrical equipment maker will sell its
operations in Russia and Belarus to local management, the
company said on April 27, as it signed a letter of intent with
the designated buyers.
It will write off up to 300 million euros ($315.5 million)
of net book value and make a non-cash reversal of currency
translation estimated at 120 million euros. urn:newsml:reuters.com:*:nL5N2WP1R4
ENERGY
ENEL ENEI.MI
The Italian utility said on June 16 it agreed to sell its
56.43% stake in Enel Russia for around 137 million euros
($144.1 million) to Russia's second-largest oil producer, Lukoil
LKOH.MM , and private fund Gazprombank-Frezia. It specified the
sale will have a negative impact on reported group net income of
about 1.3 billion euros. urn:newsml:reuters.com:*:nL8N2Y35FF
EQUINOR EQNR.OL
The Norwegian oil and gas company said on May 25 it had
exited its four Russian oil and gas joint ventures, transferring
assets to state-owned Rosneft ROSN.MM , its long-term partner.
Equinor also signed an agreement to exit the Kharyaga oil
project. urn:newsml:reuters.com:*:nL5N2XH3QF
FORTUM FORTUM.HE
The Finnish utility company plans to sell its Russian power
assets by July 1, with major Russian companies among likely
bidders, Kommersant daily reported on June 14, citing sources
familiar with the situation. urn:newsml:reuters.com:*:nL1N2Y10BE
The RIA news agency reported on June 16 that Russian energy
firm T Plus will bid for Fortum's Russian assets, while TASS
reported the same day that Gazprom is considering acquiring
shares in regional Russian power company TGK-1 TGKA.MM from
Fortum. urn:newsml:reuters.com:*:nR4N2XO02G urn:newsml:reuters.com:*:nR4N2XO025
SHELL SHEL.L
The British energy and petrochemical giant will sell its
Russian retail and lubricants business, which includes 411
retail stations and the Torzhok lubricants blending plant, to
Russia's Lukoil LKOH.MM , the companies said on May 12. Shell
would not comment on the value of the deal. urn:newsml:reuters.com:*:nL3N2X42CT
FOOD & BEVERAGES
AB INBEV ABI.BR
The Dutch brewer said on April 22 it would sell its
non-controlling stake in its Russian joint venture AB InBev
Efes, taking a $1.1 billion impairment charge in the first
quarter. urn:newsml:reuters.com:*:nL5N2WK1GY
ATRIA ATRAV.HE
The Finnish food processing company said on May 16 it sold
its fast food business in Russia, Sibylla Rus, to Russian meat
producer Cherkizovo GCHE.MM for about 8 million euros ($8.4
million). urn:newsml:reuters.com:*:nL2N2X80HW
FAZER
The Finnish bakery and food service company said on April 29
it had agreed to sell its Russian unit to Moscow's Kolomenskij
Bakery and Confectionery Holding. Fazer did not disclose the
value of the transaction. urn:newsml:reuters.com:*:nL2N2WR1P2
MCDONALD'S CORP MCD.N
The American fast food giant said on May 19 it would sell
its Russian business to its current licensee Alexander Govor
and the restaurants would operate under a new brand, though it
did not disclose the financial terms of the transaction.
urn:newsml:reuters.com:*:nL3N2XB24Z
PAULIG
The privately owned Finnish food and drink company said on
May 5 it had sold its operations in Russia to private Indian
investor Vikas Soi. urn:newsml:reuters.com:*:nL2N2WX10Z
PIZZA HUT EATP.WA
Pizza Hut's Russian franchise has been bought from
Poland-listed franchiser AmRest by Noi-M - which is linked to
restaurant group Rosinter that operates the Russian franchises
of Costa Coffee and T.G.I. Friday's - for 300 million roubles
$5.3 million), Kommersant reported on June 7. urn:newsml:reuters.com:*:nL1N2XU0FW
RAISIO RAIVV.HE
The Finnish food processing company said on April 29 it had
agreed to sell its consumer business in Russia to Copacker Agro
Ltd for about 1.5 million euros ($1.6 million). urn:newsml:reuters.com:*:nL5N2WR6BP
VALIO
The Finnish dairy producer has sold its Russian business to
GK Velkom, the company said on April 26. Valio gave no financial
value for the deal. urn:newsml:reuters.com:*:nL2N2WO0OG
MINING
AMUR MINERALS CORP A7L.L
The London-listed Russian mining company announced on May 9
it proposed to sell its main Kun-Manie project for $105 million
to Stanmix Holding Limited, a company controlled by Vladislav
Sviblov. urn:newsml:reuters.com:*:nTUC8VsDN8
KINROSS GOLD CORP K.TO
The Canadian gold miner said on June 15 it had sold its
Russian assets to the Highland Gold Mining Group for $340
million in cash, half of the previously announced price.
urn:newsml:reuters.com:*:nL4N2Y22OV
OTHERS
APATOR SA APTP.WA
Polish switchgear and metering devices company Apator
announced on May 20 its Powogaz unit had divested its entire
stake in Russia-based AO Teplovodomer for 5 million roubles
($88,496). urn:newsml:reuters.com:*:nFWN2XC0HL
AUTHENTIC BRANDS GROUP AUTH.N
Turkish shoe retailer FLO Magazacilik is in talks to buy
more than 100 stores owned by fitness brand Reebok in Russia,
which is part of the Authentic Brands Group, FLO Chairman Mehmet
Ziylan said on May 16. Ziylan added a deal had not been
finalised. urn:newsml:reuters.com:*:nL2N2X80I8
BRUNEL INTERNATIONAL BRUN.AS
The Dutch employment services company is in the process of
selling activities in Russia to local management, it said on
April 29. urn:newsml:reuters.com:*:nASM0009LM
FLUGGER GROUP FLUGb.CO
The Danish paint maker said on April 8 it had initiated the
sale of its Russian and Belarusian companies, taking a 115
million Danish crowns ($16.2 million) write-down. urn:newsml:reuters.com:*:nFWN2W60G1
IMPERIAL BRANDS IMB.L
The British tobacco group said on May 17 that the deal to
sell its business in Russia to "investors based in Russia" was
closed and did not include a clause allowing it to buy back its
business there in future. The group had previously said it was
booking an estimated charge of 225 million pounds ($276.7
million) for the transaction. urn:newsml:reuters.com:*:nL2N2X90DA urn:newsml:reuters.com:*:nTUC5NGXGR
LPP LPPP.WA
The Polish clothing retailer announced on May 19 it had
decided to sell its Russian company RE Trading to a Chinese
consortium. urn:newsml:reuters.com:*:nL2N2XB1O6
MAERSK MAERSKb.CO
The Danish shipping company has found possible buyers for
its 30.75% stake in Global Ports Investments GLPRq.L , which
operates ports in Russia, it said on May 4. urn:newsml:reuters.com:*:nL2N2WW0B3
OC OERLIKON CORPORATION AG PFAEFFIKON OERL.S
The Swiss industrial group said on June 2 it had entered an
agreement with local management to sell its business in Russia,
which will continue to operate independently under its new
owners. urn:newsml:reuters.com:*:nFWN2XO0R6
SOPRANO SOPRA.HE
The Finnish training company said on May 19 it had sold its
unit in Russia to local management, adding the sale will not
have a significant impact on the company's results. urn:newsml:reuters.com:*:nFWN2XB0K1
STORA ENSO STERV.HE
The Finnish forestry firm has completed its exit from Russia
with the sale of three corrugated packaging plants to local
management, it said on May 16. urn:newsml:reuters.com:*:nL2N2X80AE
In April, Stora said it had agreed to sell its two sawmills
and their forest operations in Russia to local management,
causing it to record a 130 million euro ($136.7 million) loss.
urn:newsml:reuters.com:*:nL2N2WN0J6
YIT YIT.HE
The Finnish builder said on May 30 it completed the sale of
its business in Russia to Etalon Group PLC ETLNGq.L for the
previously agreed price of about 50 million euros ($52.6
million). urn:newsml:reuters.com:*:nL8N2XN15S
ZURICH INSURANCE ZURN.S
The Swiss insurer said on May 20 it had agreed to sell its
Russian business to 11 members of the local team. urn:newsml:reuters.com:*:nL5N2XC0OH
($1 = 0.8131 pounds)
($1 = 0.9508 euros)
($1 = 56.5000 roubles)
($1 = 7.0809 Danish crowns)
(Compiled by Elena Vardon, Augustin Turpin, Enrico Sciacovelli,
Ina Kreutz
Editing by Andrew Heavens, Susan Fenton and Emelia
Sithole-Matarise)
((gdansk.newsroom@thomsonreuters.com ; +48 58 7 69 66 00))