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Sberbank — M&A Activity 2018
May 22, 2018
6349_rns_2018-05-22_92648882-dfe6-4c5f-a0df-693708cadba4.pdf
M&A Activity
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Sberbank (SBER)
22-May-2018 / 07:05 CET/CEST Dissemination of a RegulatoryAnnouncement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer / publisher is solely responsible for the content of this announcement.
Sberbank and Emirates NBD sign definitive agreement for the sale and purchase of 99.85% of shares in DenizbankA.S.
May 22, 2018, Moscow, Dubai, Istanbul - Emirates NBD Bank PJSC (Emirates NBD) and Sberbank of Russia (Sberbank) announce that they have entered into a defini ve agreement whereby Sberbank will sell its en re 99.85% stake in Denizbank A.S. (Denizbank) to Emirates NBD. Upon closing of the transac on, Sberbank will cease to be a shareholder in Denizbank.
In accordance with the signed agreement, the considera on for 99.85% equals TRY 14,609 mn under a locked box mechanism, based on consolidated equity capital of Denizbank as of October 31, 2017. In addi on, Emirates NBD will pay interest on the considera on for the period between October 31, 2017 and the transac on closing date. All profits from the locked box date ll closing date will be to Emirates NBD's account. As part of the transac on, and on closing, Emirates NBD will assume ownership of Denizbank's subordinated debt previously provided by Sberbank.
The closing of the transac on is subject to regulatory approval in Turkey, Russia, the United Arab Emirates (UAE) a nd other relevant jurisdic ons where Denizbank operates. The transac on is expected to close in 2018.
Denizbank, headquartered in Turkey, is the fi=h largest private bank in the country, with assets of TRY169.4bn, loans to customers amoun ng to TRY119.2bn, deposits amoun ng to TRY115.7bn as on March 31, 2018. The bank operates through a network of 751 branches, with 708 branches in Turkey and 43 in other territories (Austria, Germany, Bahrain, Moscow and Cyprus), servicing ~11.8 million customers, through ~14.1k employees and ~5.9k ATMs.
Sberbank Quote
"Denizbank is one of the most aBrac ve assets in the Turkish banking sector. We highly value the management team and the results achieved during our ownership of Denizbank since 2012.
The decision to sell Denizbank is prompted by a change in Sberbank Group's interna onal strategy and will allow us to focus further on development of ecosystem of Sberbank." ― Mr. Gref, CEO of Sberbank commented.
At the transac on comple on Sberbank expects posi ve effect on capital adequacy ra os under both Russian Accoun ng Standards and IFRS. The actual financial effects of the transac on for Sberbank are dependent on dynamics of currency exchange rates, as well as on ming between the transac on signing and closing. Denizbank equity capital at a locked box date - October 31, 2017 - amounts to TRY12.5bn.
ENBD quote
"Through this transac on, Emirates NBD will establish itself as a leading bank in the MENAT region and achieve meaningful diversifica on of its opera ons, both in new countries and in a broad range of business segments", Mr. Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD commented. He further stated that Emirates NBD supports Denizbank's proven strategy to achieve sustained and profitable growth in its established markets and opera ng segments, by adequately leveraging its strong and experienced local management and market leading digital capabili es.
Mr. Shayne Nelson, Group CEO, Emirates NBD said "The transac on represents a significant milestone forEmirates NBD and isexpected to be accretive to shareholders in the first year. Denizbank is a well-managed and prominent organiza on in the Turkish banking market, which with the current deal structure, comes at a reasonable price on acquisi on forEmirates NBD."
Denizbank equity capital amounts to TRY13.7bn as of March 31, 2018. Emirates NBD will increase its interna onal presence to 13 markets and interna onal assets will exceed 30% of the consolidated post acquisi on balance sheet.
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Emirates NBD is a leading banking Group in the region. As at March 31, 2018, total assets of the Group were AED 475.6 billion (equivalent to USD 129.5 billion). The Group has a significant retail banking franchise in the UAE and is a key par cipant in the global digital banking industry, with over 90 percent of all financial transac onsand requests conducted outside of its branches.The bank was declared the Most Innova ve Financial Services Organiza on of the Yearat the 2017 BAI Global Innova on Awards.
The bank currently has 228 branchesand 1057 ATMs and SDMs in the UAEand overseas and alarge social mediafollowing, being the only bank in the Middle East ranked among the top 20 in the 'Power 100 Social Media Rankings', compiled by The Financial Brand. It is a major player in the UAE corporate and retail banking arena and has strong Islamic Banking, Global Markets & Treasury, Investment Banking, Private Banking, Asset Managementand Brokerage opera ons.
The Group has opera ons in the UAE, Egypt, the Kingdom of Saudi Arabia, India, Singapore, the United Kingdom and representa ve offices in Chinaand Indonesia.
The Group is an ac ve par cipant and supporter of the UAE's main development and community ini a ves, in close alignment with the UAE government's strategies, including financial literacy and advocacy for inclusion of People of Determina on under its #Together Limitless plaPorm.Emirates NBD Group isan official Premier Partner ofEXPO 2020 Dubai.
Formore informa on, please visit: www.emiratesnbd.com
Sberbank is Russia's largest bank and a leading global financial ins tu on. Sberbank holds almost one third of aggregate Russian banking sector assets, it is the key lender to the na onal economy and the biggest deposit taker in Russia. The Central Bank of the Russian Federa on is the founder and principal shareholder of Sberbank owning 50% of the Bank's authorized capital plus one vo ng share, with the remaining 50% held by domes cand interna onal investors. Sberbank has more than 133 million individual and over 2 million corporate clients in Russia. Sberbank offers its services through the largest banking distribu on network of over 14,000 branchesand has over 56.8 million of ac ve individual users through remote channels.
Sberbank's interna onal footprint is spread through CIS region (Kazakhstan, Ukraine, Belarus), Turkey, Switzerland, Central and Eastern Europe and othercountries.
The Bank holds the general banking license No.1481 issued by the Bank of Russia. Official websites of the Bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.
| Sberbank | Emirates NBD |
|---|---|
| Alexander Baziyan | Ibrahim Sowaidan |
| Press office | Group Corporate Affairs |
| Tel. +7(495) 957 5721 | Tel: +971 4 609 4113 |
| [email protected] | [email protected] |
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Category Code: MSCH TIDM: SBER LEICode: 549300WE6TAF5EEWQS81 OAM Categories:2.2. Inside information Sequence No.: 5570 EQS News ID: 688055
End ofAnnouncementEQS News Service