BNP Paribas reinforces its position on the Turkish Banking market and acquires 50% of the holding company which controls the bank Türk Ekonomi Bankası A.Ş. (“TEB”)
BNP Paribas and the Çolakoğlu Group announced today that they have closed the transaction in which BNP Paribas acquired a 50% stake in TEB Mali Yatırımlar A.Ş. (“TEB Mali”), the Çolakoğlu Group’s holding company for financial services which has an 84.25% controlling stake in TEB.
The Çolakoğlu Group will remain a 50% shareholder in TEB Mali. This transaction has been approved by regulatory authorities.
Taking advantage of BNP Paribas’ product expertise and cross-selling know-how, TEB will capitalise on its recognised presence and deep knowledge of the market to further develop activities which will include, amongst others, retail, corporate and investment banking, as well as asset management and private banking, leading to significant growth prospects and synergies.
Under the terms of the agreement, BNP Paribas will pay around USD 217 million for its stake in TEB Mali.
This amount is subject within the coming weeks to completion adjustments reflecting the evolution of the net assets of TEB Mali between 30 June 2004 and completion. In addition, an earn-out mechanism linked to the performance of TEB, payable in early 2008, has been agreed between the parties.
The transaction will be immediately accretive for BNP Paribas.
TEB enjoys one of the highest ratings by the international agencies amongst the Turkish banks. It is the 10th largest private Turkish bank in terms of assets and a leading bank in trade finance and private banking. TEB’s network comprises 90 branches and employs about 2,500 people.
On 30 June 2004, TEB had revenues of USD 101 million, net income (including minorities) of USD 15.5 million, total assets of USD 3.3 billion, loans of USD 1.4 billion, deposits of USD 2.4 billion and shareholders’ funds of USD 236 million, in accordance with consolidated results.
The RoE on 30 June 2004 was 13.16%.
BNP Paribas was advised by Lehman Brothers and BNP Paribas Corporate Finance.