Ukrsotsbank sells 2.2% shares to UniCredit

Ukrsotsbank (USCB UK) bought back 2.2% of outstanding shares from minority shareholders that voted against a 45% share capital increase (for USD 157 mln) at an EGM in late April and sold these shares to UniCredit, according to an official announcement yesterday. We estimate UniCredit increased its stake in Ukrsotsbank to 97.6% as a result of the transaction. We see Ukrsotsbank’s free float shrinking further from the current 2.4% to 1.6% after the 45% share capital increase is finalized – minority shareholders likely abstained from subscription as the bank sold shares at above the market price, UAH 0.22/share. (vs. the maximum market price of UAH 0.195/share during the subscription period).