Abu Dhabi sovereign wealth fund ADQ introduced Tuesday a definitive settlement to accumulate 96% of the share capital of Odeabank, the subsidiary of Lebanon’s Bank Audi in Türkiye.
“Pursuant to the agreement, Bank Audi and other investors, which include International Finance Corporation, IFC FIG Investment Company Sarl, and the European Bank for Reconstruction and Development (EBRD), have agreed to sell their respective interests in the share capital of Odeabank to ADQ,” the fund mentioned in a press release.
The deal marks the most recent instance of the oil-rich emirate’s growth into Türkiye, with current stories suggesting the ADQ was additionally nearing an settlement to accumulate a stake in a key Turkish port.
Odeabank is a midsize lender in Türkiye with property of TL 87.3 billion ($2.55 billion), in line with Bloomberg News. The financial institution is Türkiye’s thirteenth largest personal typical financial institution by complete gross loans and buyer deposits, working with 41 branches in 15 cities throughout the nation and using roughly 1,300 individuals as of the tip of June 2024, ADQ mentioned in a press assertion.
Bank Audi, which established the agency in 2012, is its largest shareholder with a 76.4% stake.
“The acquisition of Odeabank reinforces our dedication to investing in property that lay the inspiration for the sustainable growth of our portfolio firms in addition to the broader financial system. As a part of ADQ, Odeabank can have entry to recent capital, which can enable the corporate to unlock synergies with our wider portfolio, underpinned by enticing market dynamics in Türkiye,” Mansour AlMulla, deputy group chief government officer at ADQ, mentioned.
ADQ has been in discussions to purchase the lender over the previous few months, Bloomberg News reported in August. Part of Sheikh Tahnoon bin Zayed Al Nahyan’s sprawling empire, ADQ is amongst Gulf buyers evaluating Turkish property after President Recep Tayyip Erdoğan visited the area final yr to shore up investments and bolster cooperation.
During that journey, the UAE had pledged greater than $50 billion to assist Türkiye after years of animosity between the 2 nations over political variations.
Other entities primarily based within the Gulf state, together with First Abu Dhabi Bank PJSC, have additionally evaluated potential acquisition targets in Türkiye, Bloomberg News has reported.
In 2022, ADQ launched a $300 million fund along with Türkiye Wealth Fund (TWF), which invests in firms growing rising applied sciences or enhancing present applied sciences in key sectors.
In the identical yr, ADQ acquired the main Turkish prescription drugs firm Birgi Mefar Group, which has since grow to be a part of ADQ’s wholly owned international life sciences holding firm Arcera.
In 2023, ADQ signed two memoranda of understanding with the nation to deepen bilateral relations and contribute to its financial growth.
The transaction is topic to customary regulatory approvals, together with the approvals of the Banking Regulation and Supervision Authority (BDDK) and the Competition Authority in Türkiye.
Source: www.dailysabah.com