28th Apr 2014 10:31
LONDON (Alliance News) - AIM-listed Russian private equity fund Aurora Russia Ltd Monday said it has agreed to sell Kreditmart Finance for RUB100.0 million and USD450,000, which was the company's cash balance at the time of the transaction, selling at a discount in light of the Russian market for banking assets.
In a statement, Aurora said Kreditmart Finance's non-cash assets at the time of the transaction were held in the books at RUB140.0 million.
"The board have agreed to the sale at a discount in the light of the current Russian market for banking assets and the difficult nature of the portfolio, which is the rump of the Flexinvest mortgage book and which could only otherwise be disposed of on a protracted piecemeal basis, which would be lengthy and uncertain," Kreditmart Finance said in a statement.
Aurora also said it intends to declare a further tender offer for at least GBP8.25 million in light of the disposal. The company already has the authority to repurchase shares through tender offers.
In March, Aurora Russia sold Cyprus subsidiary Flexinvest Ltd, which owned OJSC Flexbank, for RUB189.1 million in cash and mortgages with a nominal value of RUB144.2 million.
The mortgages were held by Flexbank and were transferred to Kreditmart Finance.
Kreditmart owned shares in Flexinvest so it received GBP261,500 as part of the cash proceeds.
Aurora Russia shares were Monday quoted at 20.25 pence, up 1.9%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Aurrigo