Istanbul: Commercial Bank of Qatar (CBQ), the Gulf country's second-largest bank, said it agreed to acquire a 70.8 per cent stake in Turkey's Alternatifbank (ABank) from Anadolu Group for two times the book value.
Alternatif's book value was 585.1 million liras ($323 million) at the end of 2012, CBQ said in a statement. The sale price will be based on the book value of Istanbul-based Alternatif at the end of this June, CBQ said.
"ABank operates in a dynamic economy with good long-term growth prospects, in a country that is strategically and culturally aligned," said Hussain Al Fardan, CBQ's managing director.
"We believe this represents the logical next step in the execution of our international expansion strategy," he added.
Investors from the Middle East, Russia and Asia are seeking to boost their presence in Turkey with acquisitions and licences. The Middle East's biggest lender, Qatar National Bank, said this month it may target stakes in Turkey's major banks. Dubai-based Emirates NBD has also expressed interest in acquisitions. Qatar-based Doha Bank QSC is also interested in entering Turkey, Anatoila News Agency reported yesterday. Alternatifbank shares jumped 6 per cent to 2.63 liras in Istanbul yesterday, the largest increase since January 8 and giving it a market value of 1.1 billion liras. CBQ was up 1 per cent at 67.6 riyals.
The acquisition is expected to be completed in the second half of this year after regulatory approvals, CBQ said in the statement. Alternatif is almost 96 per cent-owned by Anadolu Group and 4.2 per cent of the shares trade on the exchange.
Anadolu Endustri Holding, which has a 77.7 per cent stake in Alternatifbank, will retain 25 percent after the sale.
Other group companies won't have any stake left in the lender, Anadolu Group said in a statement to the Istanbul Stock Exchange yesterday.
"The transaction is in line with Anadolu's strategy to focus its resources on its core businesses of food and beverages, power and automotives," Tuncay Ozilhan, the group's chairman, said.