| UPDATED: Islamic Bank Turkiye Finans Bought Out by Saudi National Commercial Bank; Deal with CBK and the Noor Group falls through |
| 10 July 2007 |
UPDATED: 19-7-2007
Saudi National Commercial Bank agrees to purchase 60% of Turkiye Finans for $1.08 billion, valuing the company at $1.8 billion. Boydak Holding and the Ülker Group will retain 20% each from the deal. The deal will be completed by the end of the year and could be revised up $120-130 million depending on profits. This post was originally written on the premise that CBK and the Noor Group were going to be purchasing 50% of Turkiye Finans, but it looks as though that deal was passed up for Saudi NCB.
Paul Wouters, a guest contributor on Dinarstandard.com, wrote a very nice piece on the Turkish Islamic Banking Sector (or Participation Banks as they call it). It comes on the heals of my last post about the IPO of Albaraka Turk Bank. It details nicely the success and potential success of the players in that space.
Indeed, the Islamic Banking sector (wiki), which does not charge interest under Sharia Law, has been a small but active sector. Orgininally, according to local newspapers, and as printed in Iş Banks Daily Market Review (July 3rd, 2007(pdf)), Turkiye Finans is to sell a 50% stake to the Commercial Bank of Kuwait (CBK) and Noor Group. UPDATE: This deal is now defunct. The deal is said to be around $1.8 billion for Turkey's 2nd largest Islamic bank (based on assets), and should be completed by the end of the month. This has come just a year and a half after the Ülker Group sold 50% of Family Finans to the Boydak Holding and Anadolu Finans, thus creating Turkiye Finans. Once the merger has been completed, I will update the post on banking acquisitions in Turkey.
Of the four Islamic banks in Turkey, two are now listed on the Istanbul Stock Exchange (IMKB) with Kuwait Turk Bank thinking about an IPO in 2008-2009. Bank Asya, was the first and one of the most successful IPOs to date and has also been one of the most profitable companies listed on the IMKB. Judging by the size of the domestic demand for Albaraka Turk, it doesn't seem like this sector is going to cool down anytime soon.
 Technorati Tags: IMKB, Family Finans, Turkiye Finans, Mergers, Deal Flow, Turkey, Commercial Bank of Kuwait, Albaraka Turk, Banking Sector, Islamic Banking, The Noor Group, Boydak Holding, Ülker Group, Bank Asya, Saudi NCB
Labels: Banking Sector, IMKB, IPO, Islamic Banking, Mergers
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| Banking Sector Acquisitions in Turkey |
| 25 June 2007 |
The purhase of Oyak Bank by the Dutch ING Group has again brought to the fore the palpability of Turkey's banking sector and opportunity that exists. The total value of the sale will be $2.67 billion for 100% of Oyak Bank, which was previously owned by the Turkish Armed Forces Pension Fund.
Although, these are not private equity deals per se, I would just like to highlight that the potential still exists for equity investors from abroad proven by the extent of the current acquisition dealflow in the banking sector.
Thankfully, TDN published a nice chart of these acquistions that I will reproduce here and keep updated. Since 2001, there have been 17 deals done involving 15 banks selling equity partitions totaling $16.98 billion. Here are the deals:
Latest Banking Acquisitions in Turkey
(Originally Sourced from TDN) |
| Bank |
Date |
Acquirer |
Acquired % |
Amount Paid (USD) |
| Demirbank |
Sept. 2001 |
HSBC |
100% |
$350 mln |
| Koç Fin. Serv. |
Oct. 2002 |
Unicredito |
50% |
$240 mln |
| TEB Fin. Serv. |
Nov. 2004 |
BNP Paribas |
50% |
$217 mln |
| Yapi Kredi Bank |
Jan. 2005 |
Koçbank |
57.4% |
$1,390 mln |
| Şekerbank |
July 2005 |
Rabobank |
36.5% |
$90 mln |
| Dişbank |
Aug. 2005 |
Fortis |
89.3% |
$1,056 mln |
| Garantibank |
Aug. 2005 |
GECF |
25.5% |
$1,560 mln |
| C Bank |
Dec. 2005 |
Bank Hapoalim |
57.5% |
$113 mln |
| MNG Bank |
Jan. 2006 |
Dubai Islamic Bank |
100% |
$160 mln |
| Finansbank |
Mar. 2006 |
NBG |
46% |
$2,780 mln |
| Tekfenbank |
May 2006 |
EFG Eurobank |
70% |
$185 mln |
| Denizbank |
May 2006 |
Dexia |
75% |
$2,440 mln |
| Şekerbank |
June 2006 |
Turan Alem |
34% |
$260 mln |
| Akbank |
Oct. 2006 |
Citigroup |
20% |
$3,100 mln |
| Alternatifbank |
Nov. 2006 |
Alpha Bank |
50% |
$205 mln |
| MNG Bank |
Apr. 2007 |
Arab Bank/ Bank Med |
91% (50%/41%) |
$160 mln |
| Oyak Bank |
June 2007 |
ING Group |
100% |
$2,760 mln |
UPDATED 27-07-07:
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| Turkiye Finans |
July 2007 |
Saudi National Commercial Bank |
60% |
$1,080 mln |
| Turkish Bank |
July 2007 |
National Bank of Kuwait |
40% |
$160 mln |
Technorati Tags: Banking Sector, Acquisitions, Mergers, Banks, Deal Flow, TurkeyLabels: acquisitions, Banking, Mergers
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Publisher: Jon H. Black
