ISTANBUL (AA) - BNP Paribas on Tuesday signed a share purchase agreement with the Colakoglu Group whereby BNP Paribas will acquire a 50 percent stake in TEB Mali Yatirimlar A.S. (TEB Mali), Colakoglu Group`s holding company for financial services which has an 84.25 percent controlling stake in TEB.
The Colakoglu Group will remain a 50 percent shareholder in TEB Mali.
Taking advantage of BNP Paribas` product expertise and cross-selling know-how, TEB will capitalize on its recognized 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 217 million U.S. dollars for its stake in TEB Mali. In addition, an earn-out mechanism linked to the performance of TEB, payable in 2008, has been agreed between the parties. The transaction will be immediately effective for BNP Paribas.
TEB enjoys one of the highest ratings by the international agencies amongst the Turkish banks. TEB 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 87 branches and employs about 2,000 people.
For the year ended December 31st, 2003, TEB had revenues of 187 million U.S. dollars, net income of 39 million U.S. dollars, total assets of 3 billion U.S. dollars, loans of 1.2 billion U.S. dollars, deposits of 2.2 billion U.S. dollars and shareholders` funds of 233 million U.S. dollars.
BNP Paribas will seek from the Turkish Capital Markets Board an exemption from the requirement to launch a mandatory offer for the free float of TEB and of its subsidiary Varlik Yatirim Ortakligi A.S.
(ES-MS)
2004-11-23