Greece-based commercial bank Alpha Bank has reached an agreement with Anadolu Group, the Turkey-based majority owner of Abank, to create a franchise in the Turkish financial sector.
With interests in beverages, automotive and financial services, Anadolu already has an extensive presence in the Turkish market, and the two banks hope that this, together with Alpha Bank’s banking experience, will allow them to transform Abank (Alternatifbank) into a universal bank offering a wide range of products and services to both businesses and retail customers.
The transaction, which is expected to be completed in the first quarter of 2007, is valued at $493 million and Alpha Bank will ultimately contribute a cash consideration equal to half of this amount. The two parties will jointly establish a 50/50 holding company, the assets of which will consist of the shares currently owned by the Anadolu Group in both Abank and Alease (Alternatiflease) – namely 94% and 95% stakes, respectively.
The holding company will also own, indirectly, 100% of the brokerage firm Alternatif Yatirim, 45% of the listed closed-end investment fund Alternatif Yatirim Ortkaligi and the Istanbul-situated head offices of the bank and the brokerage company.
The parties have also announced that following the closure of the transaction, they will launch a voluntary public offer for the acquisition of the minority shares of Abank and Alease, with the same terms as those accrued to the majority shareholders.
The parties have also agreed to enter into a shareholders’ agreement providing for equal representation in the board of directors and joint decision-making in all matters of strategic importance.
Tuncay Ozilhan, Abank’s current chairman, will be the chairman of the boards of directors of both the holding company and Abank. Mr Ozilhan has served for three terms as president of the Turkish Industrialist and Businessmen’s Association.