Unicredit to seek buyers for Yapı Kredi Bank shares

Italian bank Unicredit plans to sell its shares in Yapı Kredi Bank to strengthen its capital, according to Reuters. Unicredit is currently evaluating the purchase possibilities for its assets, such as Yapı Kredi Bank, Poland-based Bank Pekao and intermediary firm Finecobank, according to a source who spoke to Reuters.

While Unicredit has left questions regarding asset sales unanswered, with its capital adequacy ratio maintaining low levels, the possibility of strengthening its capital through a paid capital increase continues to worry investors.

Unicredit's senior shareholders do not lean towards paid capital export, and they think they can meet capital requirements by reducing their current assets.

According to Unicredit's statement earlier this month, its capital adequacy ratio is just above the 10 percent level determined as the minimum level by the European Central Bank (ECB), with 10.5 percent as of late March. Unicredit's capital adequacy ratio is lower than its biggest rival Intesa Sanpaolo's 12.9 percent level. Sources speaking to Reuters on May 19 indicate that to reassure senior shareholders and the government, the bank has started seeking a new manager to replace CEO Federico Ghizzoni.