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Kazakh Kazkommertsbank and BTA Bank to merge in 2014

Business Materials 6 February 2014 18:07
Kazakh Kazkommertsbank and BTA Bank will merge by the end of 2014, Novosti-Kazakhstan reported on Feb. 6 referring to Kazkommertsbank’s managing director Sergei Mokrousov.

Baku, Azerbaijan, Feb. 6

By Elena Kosolapova - Trend:

Kazakh Kazkommertsbank and BTA Bank will merge by the end of 2014, Novosti-Kazakhstan reported on Feb. 6 referring to Kazkommertsbank's managing director Sergei Mokrousov.

Earlier in the day Kazkommertsbank said that the final agreement was reached with an individual by the name of Kenes Rakishev on acquisition of shares in BTA Bank.

Kazkommertsbank and Kenes Rakishev will buy 46.5 percent shares in BTA Bank each from Kazakh Sovereign Wealth Fund Samruk-Kazyna.

Kazkommertsbank will pay 72.075 billion tenge (about $465 million) for its share, including 31 billion tenge on the date of the deal closing and 41.075 billion tenge no later than July 1, 2017.

Moreover Samruk-Kazyna will transfer 4.26 percent share in BTA Bank to Kazkommertsbank within an asset management agreement. So Kazkommertsbank will possess over 50 percent in BTA Bank and have operational control over it.

Kazkommertsbank and BTA Bank are supposed to be merged following closing of the deal (on acquisition), the bank said.

"The deal is scheduled to be closed in the second quarter of this year, the merger is expected to occur by the end of the year," Mokrousov said.

The merger of BTA Bank and Kazkommertsbank is expected to result in creation of the largest bank in the region whose assets will exceed the assets of the nearest competitor by over than 1.5 times.

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