Halyk Bank of Kazakhstan JSC has completed the acquisition of 96.81% of ordinary shares of Kazkommertsbank JSC, Kazpravda.kz reports with reference to Halyk Bank’s press service.
"JSC Halyk Bank hereby announces the completion of transactions for acquisition of 96.81% of ordinary shares in JSC Kazkommertsbank, including 86.09% from Mr K.Kh. Rakishev and 10.72% from joint stock company Sovereign Wealth Fund "Samruk-Kazyna", in accordance with the sale and purchase agreements entered into force on 15 June 2017, " says the press release published on the official website of the Halyk Bank.
According to the press service, the transactions were completed following satisfaction by the parties of certain conditions precedent, including:
- completion of due diligence by Halyk Bank and the National Bank of the Republic of Kazakhstan ("National Bank");
- acquisition by Mr. Rakishev of shares in Kazkommertsbank from Mr. N.S. Subkhanberdin and JSC Central Asian Investment Company;
- full repayment of the loan by BTA Bank to Kazkommertsbank;
- receipt of customary approvals from the relevant regulatory bodies in Kazakhstan and other applicable jurisdictions;
- repayment by Kazkommertsbank of 41 billion tenge owed to Samruk-Kazyna for the shares in JSC BTA Bank under the 2014 transaction.
As announced earlier, Halyk Bank is planning to recapitalize Kazkommertsbank for a total of KZT 185 billion, which will bring Kazkommertsbank's capital adequacy ratio in line with those maintained by domestic peers.
"Successful completion of the deal to acquire one of Kazakhstan's largest financial institutions, with its extensive branch network, large volume of client transactions, and presence in a number of foreign jurisdictions, has been a result of a concerted effort of Halyk Bank's team and its advisors. Involvement of multiple parties, including the state, as represented by the National Bank of Kazakhstan, the Ministry of Finance, and Samruk-Kazyna, provides further testament to the scale of the transaction. In particular, I would like to highlight Halyk Bank's unprecedented focus on organizing comprehensive due diligence of Kazkommertsbank, to ensure successful completion of the deal, " Umut Shayakhmetova, Chairperson of the Management Board of Halyk Bank commented, adding that they would do their best to sustain and enhance the quality of client service, continue to advance the bank's information technologies, restore customer lending and retain Kazkommertsbank's professional staff.
Reported by Alexander Kononets for the Kazakhstanskaya Pravda.
