Italian banking group UniCredit has agreed to sell its Ukrainian business Ukrsotsbank to ABH Holdings (ABHH) in a deal worth around EUR852m ($930.8m).
UniCredit will offload the unit in return for a minority stake in ABHH, which is a Luxembourg-based investment group owned by Alfa Group.
Under the agreed terms of the deal, UniCredit will secure new shares issued by ABHH that will offer it a 9.9% stake in ABHH.
UniCredit will book a charge of nearly EUR200m in the fourth quarter following the transaction, the lender said in a statement. The charges will not impact the capital position of the bank.
"At closing, benefiting of the related reduction of the risk weighted assets, the transaction has a substantial neutral impact on the CET 1 ratio of UCG," UniCredit said.
The deal, subject to regulatory approval, is scheduled to close in 2016.