Morgan Stanley says sells Russian mortgage business
The Russian subsidiary of Morgan Stanley said on Monday it plans to sell its mortgage lending unit.
Morgan Stanley bought the City Mortgages bank in 2006 in a deal valued at $185 million, or 4.75 times the book value. Russian business newspaper Vedomosti quoted a source close to the deal as saying Morgan Stanley is now seeking 2.5 times the book value. City Mortgages has capital of 1.7 billion rubles ($72.03 million) and is rated 142nd among Russian banks by assets.
Vedomosti said Morgan Stanley has started a due diligence process for City Mortgages and is taking offers. The sale is part of a wider plan to scale back Morgan Stanley’s home-lending business, which was hit by the global credit crunch. Morgan Stanley plans to shut down its UK mortgage origination business in June. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.