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July 1, 2010updated 12 Apr 2017 4:22pm

Hypo MD confirms sale of leasing companies

Hypo Group Alpe Adria (HGAA) CEO Gottwald Kranebitter has confirmed to Leasing Life his network would be prepared to consider offers from parties interested in buying five of the groups leasing subsidiaries. The recently nationalised Austrian bank, seeking to cut its balance sheet in line with an EU restructuring mandate, is trying to find buyers for leasing subsidiaries in Bulgaria, Hungary, Macedonia, Germany and Ukraine territories where the group has no core retail banking infrastructure to fall back on.

By Fred Crawley

Hypo Group Alpe Adria (HGAA) CEO Gottwald Kranebitter has confirmed to Leasing Life his network would be “prepared to consider offers” from parties interested in buying five of the group’s leasing subsidiaries.

The recently nationalised Austrian bank, seeking to cut its balance sheet in line with an EU restructuring mandate, is trying to find buyers for leasing subsidiaries in Bulgaria, Hungary, Macedonia, Germany and Ukraine – territories where the group has no core retail banking infrastructure to fall back on.

Inside Hypo’s banking territories, leasing units are considered ‘core’ to the group’s activities, and are likely to remain.

Bulgaria and Macedonia seem most likely to be sold, according to comments made by HGAA to local press in May.

“Should the final decision require that Hypo Group Alpe Adria has to sell its subsidiaries in Macedonia and Bulgaria,” the bank said, “this will be an orderly process of identifying a suitable new owner.”

HGAA has six leasing offices in Bulgaria and two in Macedonia, with 97 and 28 staff respectively. The other three Hypo leasing businesses facing sale employ a total of 77 staff.

According to Kranebitter, “new business in 2009 was limited” for these latter subsidiaries, which now serve existing customers almost exclusively.

The most obvious candidates for buying HGAA’s leasing businesses are other big Central and Eastern European financial networks, such as Raiffeisen and UniCredit, but it is understood the businesses for sale contain a high proportion of non-performing loans.

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