Aleksandr Yaroslavskyy completed the sale of UkrSibbank to BNP Paribas Group

Last week it became known that one of the largest Ukrainian financial institutions - Kharkiv UkrSibbank - completely went under control of the French banking group BNP Paribas. This happened after billionaire Aleksandr Yaroslavskyy, who managed to earn almost 300 million dollars for a minority share, stopped being the owner of the financial institution

The fact that UkrSibbank shareholders agreed, was announced on December 9. On this day, the bank reported that the owner of a controlling share of its shares - the French group BNP Paribas - bought 18,6% of the shares of Ukrainian financial institution that belonged to businessman Aleksandr Yaroslavskyy. "As a result, BNP Paribas currently holds more than 99.99% of the share capital of the bank", - was said in UkrSibbank statement. Kharkiv DCH group, owned by Aleksandr Yaroslavskyy, the same day, posted its own, more extensive report, which indicated that the deal ended on December 2 and has been mutually beneficial.

In his commentary on this, the director of Kyiv Ltd. "Development Construction Holding (control structure of DCH. – "Delovaya Stolitsa" (DS)) Artem Aleksandrov expressed confidence in further cooperation with BNP Paribas for other financial projects, "if there is a desire on both sides, and projects are commercially interesting."

Although the amount of the deal between UkrSibbank shareholders wasn`t announced by agreement of the parties, "DS" managed to find out that Mr. Yaroslavskyy has managed to earn for his remaining minority in the bank share a serious sum - about 300 million dollars. And he hoped for more: on August 12, 2010, the French group at the UkrSibbank shareholders meeting voted to increase his share capital from UAH 2.23 billion. - up to UAH 7.51 billion, Aleksandr Yaroslavskyy`s CJSC "Ukrainian Metallurgical Company", which owned the 18.6% package, has sent the bank a request to buy its shares for 450 million dollars. BNP Paribas disagreed, attempting to prohibit Kharkiv financial institutions follow the terms of the minority shareholder. Negotiations between the parties took several months, until on November 25 in Kyiv was signed a compromise settlement agreement, the consequence of which was the conversion of BNP Paribas in almost the sole owner of UkrSibbank.

As "DS" already reported, the process of parting with a financial institution Aleksandr Yaroslavskyy started back in 2005 when Kharkiv businessman and his partner Ernest Galiev announced the sale of a 51% share of the bank to BNP Paribas group. The transaction amount is also not anounced, however, subsequently it has been estimated at  400 million dollars. Keeping 49% of the shares of the bank, Mr. Yaroslavskyy and Mr. Galiev became partners with the French, but in the past year, Ernest Galiev decided to go out of business, losing his share (about 24,5%) to BNP Paribas, and the package of the group has grown to 75,5%. After that, the bank increased its share capital (from UAH 4 billion to UAH 5.28 billion), and as a result Aleksandr Yaroslavskyy`s share went down from 24.5 to 18.6%. And this year, on the eve of a new capital increase, FC Metalist president has lost his patience. He was not satisfied conditions proposed by the French, - to buy shares of additional issue for "real money", while BNP Paribas was going to participate in the subscription by the conversion of subordinated debt. Kharkiv magnate decided it was time to leave his offspring, while receiving a maximum from the new owner, and that was done.

economica.com.ua