Will Koç sell Yapı Kredi to the Arabs? Reuters reports!

The United Arab Emirates (UAE)-based First Abu Dhabi Bank is set to acquire a 61.2% stake in Yapı Kredi, Turkey's fourth-largest private bank. Following the emergence of the news, Yapı Kredi shares in Istanbul rose by up to 6.7%, while Koç Holding shares increased by 3.7%. FAB shares remained flat.

Sources who spoke to Reuters and requested anonymity because the talks are confidential said that the details have been under negotiation for several months. 

DECLINED TO COMMENT

One of the sources stated that the Turkish conglomerate Koç is seeking approximately 8.5 billion dollars for its shares in Yapı Kredi, while FAB has offered around 7.5 billion dollars.

FAB, the largest bank in the United Arab Emirates by assets, and the Koç Group declined to comment.

Koç Financial Services owns 40.95% of Yapı Kredi, while Koç Holding owns 20.22%.

TALKS ARE ONGOING

In a statement to the Public Disclosure Platform (KAP), Koç Holding noted that negotiations are ongoing but that there is no development yet that would require a public announcement. The statement made to KAP is as follows:

"News has appeared in the press and media outlets stating that negotiations regarding the sale of our shares in our subsidiary Yapı ve Kredi Bankası A.Ş. (YKB) have reached the final stage. As is known, as a holding company, we may hold discussions with relevant parties to evaluate alternatives that may arise regarding our portfolio. While preliminary discussions of a similar nature regarding the subject reflected in the media are continuing, there is no development that would require a public disclosure within the scope of the Capital Markets Board's Communiqué on Material Events (II-15.1). This statement has been made upon questions received from our investors."

HAD BEEN DENIED

Negotiations regarding the sale were also reported by Bloomberg approximately 1.5 months ago, but at that time, Koç Holding issued a statement to KAP denying the claims. 

Following the visit of President and AKP Chairman Recep Tayyip Erdoğan to the Gulf region in June, FAB became the latest UAE bank to show interest in assets in Turkey. Previously, Dubai Islamic Bank had announced that it would acquire a 20% stake in TOM Group.

NOT THE FIRST

Dubai-based Emirates NBD acquired Denizbank for 2.8 billion dollars in 2019. Saudi and Kuwaiti banks have been present in Turkey for a long time. Saudi Arabia's largest bank, National Commercial Bank, acquired Türkiye Finans Katılım Bankası for 1.08 billion dollars in 2007. Kuwait Finance House established its wholly-owned subsidiary Kuveyt Türk Katılım Bankası in Turkey in 1989.

News Source: 12punto