Société Générale disposing of debt collection agency

As reported in Russian business daily Kommersant on 15 October 2012,  Société Générale has decided to dispose of the debt collection agency owned by its Russian subsidiary Rosbank. This represents a continuation of the consolidation of the French group’s assets in Russia under the Rosbank brand.

Perceiving the Debt Recovery Agency as a non-core asset, Société Générale has now been holding talks about its sale, with potential buyers including the Capital Collection Agency – one of its owners previously worked for Rosbank. The agency, which was established in 2005 and works with bank debt, as well debts in the insurance, mobile telecoms and utilities sectors, is worth an estimated RUB 2.4 billion based on a multiple of three times annual revenues (RUB 795 million in 2011).

However, the valuation of the agency is contingent on the continued receipt of business from Société Générale structures in Russia, as it is a captive entity.

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