Bank of Cyprus Revises Offer to Offload Ukraine Unit

Bank of Cyprus said Monday it is looking "positively" at a revised offer to sell its loss-making PJSC Ukrainian unit to Russia's Alfa Group as part of a restructuring drive.

In January, BoC, the island's largest lender, said it had agreed to sell its 99.77 percent stake in the subsidiary to ABH Ukraine, which is part of Alfa Group, for 225 million euros ($308 million).

But Cypriot media reported the Russians are now offering 10 percent less than the original figure due to the worsening political and economic crisis in Ukraine.

Moscow annexed Ukraine's Crimea Peninsula last month, and Western powers accuse the Kremlin of fomenting further unrest in the country's mainly Russian-speaking east.

"Bank of Cyprus announces that a revised consideration has been offered by the Alfa Group that is viewed positively by the board of the directors," said BoC.

"The sale is expected to be finalized in the near future and is subject to approvals from the relevant regulatory authorities," it said in Monday's statement.

The sale is part of the liquidity-strapped group's strategy of focusing on core businesses and markets, and disposing of other operations.

"Upon the completion of the sale, the bank will issue an announcement providing information as to the financial impact of this transaction," said BoC.

The Cypriot bank acquired PJSC Bank of Cyprus in 2008.

It operates a network of 42 branches, focusing both on individuals and businesses in Ukraine.

As at September 30, 2013, the bank had total assets of about 245 million euros and equity of 70 million euros.

Cyprus agreed in March to a 10-billion-euro rescue package with the European Commission, European Central Bank and International Monetary Fund to bail out its troubled economy and oversized banking system.

The deal included the closure of the island's second-largest bank, Laiki, and a 47.5 percent "haircut" on deposits above 100,000 euros at BoC.

Many of those large BoC depositors were Russian and in return they got shares in the lender with six Russians now represented on the 15-member board.