(MENAFN - Arab Times) Burgan Bank, one of Kuwait's leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced today that it has completed its acquisition process to acquire a 99.26 percent stake in Eurobank Tekfen from Eurobank EFG for a deal value of KD 98.88 million (approximately TRY627mn).
Eurobank Tekfen and its subsidiaries (EFG Istanbul Equities & EFG Leasing) are fully owned subsidiaries of Burgan Bank as of Dec 21, 2012. Burgan Bank has received all the regulatory approvals in Kuwait and Turkey for this acquisition.
Burgan Bank Chairman, Majed Essa Al-Ajeel, said: "The Turkish economy and banking sector have continued to demonstrate solid performance and resilience throughout the recent global financial crisis and offer opportunities for continued long term expansion. Turkey's young and rapidly growing population, combined with its strategic positioning between Europe and the Middle East offers strong potential for further economic growth in the medium-to-long term, with increasing business flows with the Middle East."
"We would like to take this opportunity to thank the Central Bank of Kuwait, BRSA, the Turkish Capital Markets Board, Eurobank EFG, Tekfen Group, our advisers, our new colleagues - the Management and staff of Eurobank Tekfen & its subsidiaries for their support throughout the sales and handover process". Added Al-Ajeel
Eduardo Eguren, Burgan Bank Chief Executive Officer further elaborated on the acquisition: "In-line with our Corporate Strategy's objective of expanding our footprint, scale and capabilities through strategic acquisitions, Burgan Bank will gain access to the attractive Turkish banking market through an established franchise led by seasoned management team and offering broad banking services to Corporate, SME and Retail clients at an attractive pricing level with no creation of goodwill.
Our presence in Turkey will further enhance and support Burgan Bank's regional expansion strategy."