AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

Dubai's Emirates NBD said on Wednesday it will buy Turkey's Denizbank from Russia's Sberbank at a roughly 20 percent discount to a previously agreed price, after a steep fall in the Turkish lira. Under a new agreement reached with state-owned Sberbank, Dubai's largest lender said it will buy Turkey's fifth largest private bank for 15.48 billion lira ($2.8 billion), compared to the 14.6 billion lira announced in May.
Although the deal's lira value is higher, the dollar value when it was announced in May was put at the equivalent of $3.2 billion, about $400 million more that the new price. The lira has tumbled over concerns about the Turkish central bank's independence and Ankara's worsening ties with Washington.
The Denizbank deal comes against a backdrop of Turkey's strained relations with Gulf states since Ankara stood by Qatar after the United Arab Emirates, Saudi Arabia and others accused Doha of supporting terrorism, a charge it denies. The transaction will help Emirates NBD diversify its business and establish itself as a leading bank in the region, the bank's vice chairman Hesham Abdulla al-Qassim said in May.
For Russia's biggest bank by assets, the sale of Sberbank's biggest asset outside Russia is part of a shift back to its home market. It bought Denizbank in 2012 for about $3.5 billion when it wanted to establish a presence abroad. For Emirates NBD, the revised deal represents a discount of roughly 20 percent, a spokesman for the bank told Reuters, without providing further details.
Sberbank said it expected to receive $5 billion from the sale of Denizbank, including capital and debt. The news of the sale sent shares in Sberbank up 1.5 percent at market opening. The sale price is based on Denizbank's capital plus 5 percent, according to international financial reporting standards, Sberbank said. The bank added that it expected the deal to be closed by the end of the second quarter of 2019.
Denizbank's equity amounted to 15.51 billion lira as of December 31, Emirates NBD said in a bourse statement, adding that the deal is expected to close by the end of the second quarter, subject to regulatory approval.

Copyright Reuters, 2019

Comments

Comments are closed.