08/07/2014 - Kazkommertsbank, BTA Bank complete merger in Kazakhstan

Category: Economy, Finance & Investment News
Published on Tuesday, 08 July 2014 Written by TCA

ALMATY (TCA) — Kazkommertsbank (KKB), one of the largest banks in Kazakhstan and Central Asia, has announced the completion of the acquisition of BTA Bank shares.

In accordance with previous agreements, on 30 June, 2014, Kazkommertsbank and Kenes Rakishev, a 34-year-old entrepreneur and venture investor from Kazakhstan, each acquired 46.5% of BTA Bank’s shares from Kazakhstan’s state-owned Sovereign Wealth Fund Samruk-Kazyna, KKB said. Simultaneously, Samruk-Kazyna transferred its remaining 4.26% stake in BTA to KKB in accordance with the Trust Agreement. This provided KKB with more than 50% of voting rights and operational control of BTA.

“We are pleased that we were able to complete such a large and complex transaction in a timely manner,” said Nina Zhussupova, CEO of Kazkommertsbank. “Today's event was the next major milestone in the implementation of our strategy, which is aimed at strengthening KKB’s position as one of the leading universal financial institutions in Kazakhstan and Central Asia. Now, together with other shareholders, we will focus on the process of integrating the two banks and reducing the level of non-performing loans. We believe that this transaction will have a lasting positive effect on Kazakhstan’s banking system and will improve its resilience to economic cycles.”

“The merger of the two banks has several key advantages,” said Magzhan Auezov, Chairman of the Board of BTA Bank. “Our branch network will immediately have a significantly larger geographical reach and our customers will have wider access to financial products and services. The product range of the new, combined entity will be much broader than the banks currently offer to the market separately.”

“This transaction has drawn a line under the crisis support package which the government was forced to provide in order to rescue and stabilize Kazakhstan’s banking system,” said Kenes Rakishev, the new shareholder and the Chairman of the Board of Directors of BTA Bank. “Time has shown that this decision was the right one. I am glad that the ownership of BTA Bank ultimately landed in the hands of domestic investors. I am convinced that the new shareholders will make every effort to ensure that the bank takes only the best banking practices and experience into the future.”

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