Ukrgazbank Looking Sell Controlling Stake In 2007

Ukrgazbank’s (UGZB) management announced yesterday that it had entered into negotiations about the strategic sale of a controlling stake in the bank and are looking for roughly USD 700 mln (7.5 P/B).  Additionally Ukrgazbank officials said they plan to attract over USD 170 mln foreign markets in 2007. In the summer the bank plans to make a three-year USD 100 mln Eurobond placement and get a syndicated loan for the remaining amount. In 2006 Ukrgazbank reported net profits of USD 891 mln and increase of 87% yoy.  UGZB is Ukraine’s 16th largest bank in 2006 in terms of assets. Nick Piazza: At their press conference Ukrgazbank officials credited an International Financial Corporation (IFO) Corporate Governance program for increasing the bank’s transparency and thus, they believed, its value by 40-50%. In terms of corporate governance, UGZB is quite a turnaround (See our report from February 6). The bank has made huge strides in improving its investor relations over the last six months.