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)
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