PPF Group sells control of Russian subsidiaries for 26 bln rubles, could fully withdraw from them before Nov 2023

MOSCOW. June 23 (Interfax) - PPF Group has sold its controlling stake in its Russian subdivisions for around 26.4 billion rubles as part of the first part of a deal.

The first stage includes the sale of 50.5% in Russia's HCF Bank, Home Credit Insurance, and microlending organization Kupi ne Kopi (Buy Don't Save), as well as 100% of Forward Leasing and the Vsigda da (Always Yes) company, the group said in its annual report.

Home Credit B.V., part of PPF Group, reduced its share in HCF Bank, Home Credit Insurance, and Kupi ne Kopi from 50.5% to 49.5% last week, relinquishing control. Prior to that, one of the group's organizations fully sold Vsigda da and Forward Leasing to former head of RTS Ivan Tyryshkin.

The second part of the deal stipulates sale by the group of its remaining stake in its Russian subdivisions for 16.4 billion rubles. This stage should be completed before November 2023. The seller and the buyer also have the right under certain conditions to accelerate settlement of the deal, as a result of which the price could be reduced by 11.1 billion rubles.

PPF Group and Home Credit announced in mid-March that they had entered into an agreement to sell their banking assets and subsidiaries in Russia to a group of Russian individual investors led by Tyryshkin. The agreement envisaged that Kazakh bank Home Credit, a subsidiary of Russia's HCF Bank, would be sold to shareholders and several senior managers of PPF and Home Credit as part of the deal. PPF senior management bought 75% of shares in the Kazakh subsidiary from HCF Bank in May.