Local
articles | 04 March 2014

Aurora Russia sells Cyprus Subsidiary

Closed-ended investment company Aurora Russia Ltd says it has sold its Cyprus subsidiary Flexinvest Ltd, which owns OJSC Flexbank, to an unnamed firm in a deal worth £3.2 million sterling.

Aurora said that as part of the sale, mortgages with a nominal value of around £2.4 million held by Flex Bank have been transferred to its subsidiary Kreditmart Finance Ltd. These mortgages will then be on-sold in the open market, subject to any discounted value that may result on their sale. Aurora said these combined assets were valued at £6.3 million.

However, the company warned that given current market conditions in Russia for banking assets, the recent withdrawal of several banking licences by the Central Bank of Russia, and the likely need for Aurora to provide further capital to Flex Bank, it has not been in a strong position to achieve a sale at net asset value. The firm said net of transaction costs, cash proceeds will be around £2.9 million The stock was last trading at 20.30 pence, down 0.95 pence or 4.7%

Source: Alliance News

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