One of the top leasing companies in central and eastern Europe, Volksbanken Leasing International, has hired Ithuba Capital to provide advisory services on its pending sale. The owners of the leasing company decided on the course of action which puts pressure on Raiffeisen Zentralbank to make a decision on the future of the firm.
Austrian lender Volksbanken AG, which has become partly state owned, said that it has decided together with fellow owner VR-Leasing AG to engage the services of Ithuba, which is run by Willi Hemetsberger, a veteran investment banker.
RZB has been in discussions on how best to assist in the bailout of Volksbanken from last year's crisis. The best option would be selling off its leasing assets and the proceeds would be given to pay off the bailout funds.
According to Hemetsberger, RZB is now just one of the bidders and not longer has exclusive access. He told Reuters, "It is very important that this is an open process."
According to the bailout agreement approved by European Commission, Volksbanken is required to sell off 50% of its vehicle and machinery leasing company by the end of 2014.
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