Bank Hapoalim (LSE:BKHD; TASE:POLI) today signed an MOU to acquire the controlling interest in Turkey’s C Kredi ve Kalkinma Bankasi AS (C Bank). Bank Hapoalim will buy over half of C Bank’s shares. The MOU was signed with C Bank owners and RP Capital Group, which also plans to invest in C Bank.
Bank Hapoalim will invest $113 million in acquiring C Bank’s shares. Bank Hapoalim and RP Capital Group’s investment will boost C Bank’s shareholders’ equity by $200 million, making it one of Turkey’s 20 largest banks.
The acquisition, based on C Bank’s shareholders’ equity, is subject to due diligence, scheduled over the next two months, approval by Bank Hapoalim’s board, and obtaining the necessary permits from the Bank of Israel and the Central Bank of the Republic of Turkey. Following the acquisition, Bank Hapoalim and RP Capital Group plan to develop C Bank’s business and retail banking activities.
C Bank’s current owners acquired it from the Turkish government in 2002. It is a boutique bank specializing in business and investment banking. C Bank’s current owners also have banking interests in Central and Eastern Europe, and in Russia and other CIS states.
C Bank focuses on financing large-scale transactions. It led tenders for the privatization of the operation of Istanbul’s Ataturk International Airport’s domestic and international terminals and car parks, won by Tepe Akfen Ventures (TAV); the privatization of Turkish seaports; and other transactions. C Bank also finances Turkish trade transactions with other countries, mostly in Western Europe.
Based in Istanbul, C Bank has branches in Ankara and Izmir. It has posted a return on equity of 22% in dollar terms in recent years, and a efficiency ratio of 27%, the sixth highest among Turkey’s banks.
Published by Globes [online], Israel business news - www.globes.co.il - on September 13, 2005