ABank Share Transfer
“We view this strategic move as an important step in the The Commercial Bank’s regional expansion strategy”
One of the most reputable banks of the GCC region and Qatar’s first private bank, The Commercial Bank (P.S.Q.C.) acquired Anadolu Group’s remaining 25 percent stake in ABank, thereby becoming the sole shareholder of the bank.
Omar Hussain Alfardan, The Commercial Bank Board Director and ABank Vice Chairman, noted how the move would lead to stronger synergies and closer integration between the two banks.
Joseph Abraham, The Commercial Bank CEO, said: “We view Turkey as an important investment center in the medium and long term. Owning hundred percent of ABank’s shares means that we will be able to offer our clients in Qatar and Turkey a seamless banking experience across both countries.”
Tuncay Özilhan, Anadolu Group Chairman, thanked for the extremely productive partnership continued for over 3 years and underlined that they were leaving ABank in safe hands.
Müge Öner, ABank Acting CEO and Board Member, noted that the bank now belonged in its entirety to one of the prestigious financial institutions of the world, The Commercial Bank, adding that they continued with firm steps towards their sustainable growth target in line with their Focused Banking strategy.
Qatar’s first private bank renowned for its innovative banking vision, The Commercial Bank, and Anadolu Group finalized the transfer of ABank shares. The Commercial Bank (P.S.Q.C.), which had acquired a 70.8 percent stake in the bank from Anadolu Group in July 2013 before increasing its shares to 75 percent with share buyback, bought Anadolu Group’s remaining 25 percent stake from for USD 222.5 million, thereby becoming the sole owner of the bank.
Conducted via exercising the put option within the shareholders agreement signed during the first share transfer in 2013, the resolution concerning the sale of 25 percent of the shares was disclosed to the Turkish Public Disclosure Platform in July 2016.
“Greater collaboration and integration.”
Omar Hussain Alfardan, The Commercial Bank Board Director and ABank Vice Chairman, said: “The fact that ABank is now a hundred percent subsidiary of The Commercial Bank opens up opportunities for even greater collaboration and integration to ensure our businesses are aligned, create multiple synergies, and deliver benefits that will be felt by all of our stakeholders in Qatar and Turkey.”
“ABank and Turkish economy are our future investment areas.”
Commenting further on the issue, Joseph Abraham, The Commercial Bank CEO, underlined that this investment, which started in 2013, demonstrated their confidence in the Turkish economy, banking industry, and their commitment to ABank having a history of quarter of a century. He added: “ABank is the third and the largest investment made by The Commercial Bank outside of Qatar. Our goal is to boost ABank’s share within the consolidated figures by leveraging the potential of the Turkish economy, as well as capture a share of the increasingly growing investments and trade flows between Qatar and Turkey.”
“We are leaving ABank in safe hands.”
Pointing to their harmonious partnership over the last 3 years since July 2013, Tuncay Özilhan, Anadolu Group Chairman, said: “Last July, we had disclosed our decision to transfer our remaining 25 stake in ABank to The Commercial Bank. Following the approval of the regulatory authorities, this planned change was finalized and within the framework of the shareholders agreement signed 3 years ago, ABank became a fully owned subsidiary of The Commercial Bank. In particular, thanks to their prestige in the international arena and their know-how, we experienced the positive results of the partnership we started with The Commercial Bank in 2013. Since the very first day of the initial share transfer, we have had a productive and successful cooperation with the valuable team of The Commercial Bank. We are now leaving ABank in safe hands, which we built with great efforts. Throughout its operations, ABank has always advanced with firm steps on its path and strived to achieve the mission it undertook despite the many changing dynamics in banking in both global and local sense. Moving forward, I believe that ABank will continue to contribute in our national economy with its focused banking strategy and strong human capital.”
Expressing his wishes that the share transfer would be beneficial to all parties, Özilhan thanked The Commercial Bank top management for their rapport throughout their partnership.
“41-year old The Commercial Bank and 25-year-old ABank”
Müge Öner, ABank Acting CEO and Board Member, emphasized on the importance of the development as a major milestone for ABank, and added: “As ABank, we are now entirely a part of The Commercial Bank. This very share transfer is a concrete indicator of The Commercial Bank’s confidence in the Turkish economy and ABank. Over the last few years, we experienced the clear benefits of being in the same family with an internationally reputable bank through syndication loan, subordinated loan and bond issue transactions. The international prestige we enjoyed thanks to The Commercial Bank made us proud. And these experiences are yet another indicator of the confidence in our bank.”
Noting that ABank had been consolidated in The Commercial Bank’s balance sheet for the last 3 years, Öner continued: “The latest share transfer will not change our targets and strategy in any way. That being said, The Commercial Bank’s support to our bank will increasingly continue. It will continue to strengthen us even further in our sustainable growth journey. And the international reputation and vision of The Commercial Bank, which has left behind 41 years, will further whet ABank’s appetite for sustainable growth.”
In the meantime, ABank also inherited an important business culture and heritage based on one of the longest-established groups in Turkey, Anadolu Group, said Öner, adding: “It was thanks to this heritage that ABank could maintain its robust structure throughout the challenging times in its 25 years of history and became what it is today.”
“Sustainable growth through Focused Banking strategy”
Öner also explained their targets, and said, “As ABank, we made great strides with our growth strategy, or “’Focused Banking’, which encompassed a 3-year-long transformation process from 2015 to 2017, and we will achieve our sustainable growth target by advancing on this path,” expressing their desire to become the main bank of their customers in their areas of focus. In her statement, Öner said: “We believe that the business model we created based on this approach will naturally bring healthy asset growth and sustainable profitability. In the meantime, 2017 will mark our 25th anniversary. By the end of 2017, during which we will leave behind quarter of a century, we will start getting the clear results of our focused strategy. Transforming our customer relations in Corporate, Commercial, and Retail banking customers into a long-winded collaboration is a priority for us.”