Dexia SA/NV, a Belgian-French banking group, has reached an agreement with Zorlu Holding to purchase approximately 75 percent of Istanbul-based Denizbank AS for roughly 2.44 billion USD, to be paid in cash upon completion of required legal procedures.
Dexia CEO Axel Miller, 41, called the deal "a unique opportunity to become an important player" in the Türkiye market, noting the country had long been on the bank's expansion radar. Miller assumed leadership in January and has been divesting assets while pursuing international growth through acquisitions and partnerships.
The Brussels-based lender, which derives much of its revenue from municipal lending, is targeting annual per-share earnings growth of more than 10 percent through 2007 by expanding consumer banking operations beyond Belgium.
Following the announcement, Dexia shares dropped about 3.8 percent to 18.76 euros in Brussels, giving the bank a market value of roughly 20.7 billion euros. Denizbank shares in Istanbul rose 9.2 percent to 13.10 liras.
Analyst Jean Sassus of Raymond James in Paris, who carries a buy rating on Dexia stock, described Denizbank as well-capitalized and said the purchase price appeared reasonable.
Historical summary. TurkishPress restated this wire report, first published in May 2006, in its own words.