Eurobank EFG and the Tekfen Group form a strategic alliance in Tekfenbank
Eurobank EFG to acquire 70% in Tekfenbank
EFG EurobankErgasias S.A. (Eurobank EFG) and Tekfen Holding (Tekfen Group) agreed today to join forces in the Turkish financial services market. According to the agreement, Eurobank EFG will acquire 70% of Tekfen Group’s holding in Tekfenbank together with its wholly-owned subsidiary, Tekfen Leasing (together the ‘Bank’). Tekfen Group will remain a strategic shareholder in Tekfenbank, holding almost all of the remaining shares in the Bank. The consideration for the transaction implies a total valuation for Tekfenbank of approximately USD 260 million based on a Net Asset Value of the Bank estimated at closing of USD 80 million. The partners agreed that, as part of the overall transaction, Tekfenbank will acquire full ownership of EFG Istanbul Securities, currently a subsidiary of Eurobank EFG. Closing of the transaction is subject to regulatory approvals and is expected to occur in the third quarter of 2006.
Tekfenbank is a universal bank that provides a complete range of banking products and services in
Tekfenbank’s strategy for the medium-term envisages strengthening its SME presence by (1) attracting additional customers through its existing branches (2) extending its distribution network (3) increasing per customer exposures and (4) driving the cross-sell ratio, especially with regards to affluent clients. Tekfenbank also intends to move into new growth business segments, such as mortgages and asset management. Furthermore, the bank, in conjunction with its future subsidiary EFG Istanbul Securities, intends to enhance its activities in capital markets.
Celebrating its 50th anniversary this year, Tekfen Group is one of
Eurobank EFG is the second largest Greek bank with presence in
Eurobank EFG considers that
Through this cooperation the two shareholders expect to combine their strengths in the Turkish financial services market – Eurobank EFG’s know-how on traditional and contemporary banking products will be leveraged along with the Tekfen Group’s extensive presence and knowledge in the Turkish market. In addition, the financial strength of the two shareholders and their commitment in Tekfenbank secure the bank’s medium and long term growth.
The HSBC Group, through its investment banking offices in