Last night, Raiffeisen International Bank-Holding AG signed a contractto sell its minority stake in the Kazakh JSC Bank TuranAlem (BTA)subject to a successful closing, which is expected within the next twoweeks. The stake consists of 351,139 common shares, representing 7.7 percent of BTA’s capital. The package will be sold for ˆ 136.5 million to an investor consortium led by Stockholm based East Capital Explorer Financial Institutions Fund.
“We focus on strategic, not on financial investments and our strategy is to actively manage the banks within our network. Since this is only feasible from a majority shareholder’s position and it is clear we will not achieve this with BTA, we have decided to sell our participation,” said Herbert Stepic, CEO of Raiffeisen International. A sale has been mentioned as a realistic option by Raiffeisen International’s management for several months, should the long-lasting negotiations with BTA’s other shareholders not bear fruit. “Despiteour decision, Kazakhstan remains an attractive market for us, which is also underlined by the fact that we run one of the three largest leasing companies of the country,” added Stepic.
Raiffeisen Zentralbank Oesterreich AG (RZB), the 70 per cent shareholderof Raiffeisen International, acquired the participation in BTA in theform of convertible preference shares in the autumn of 2001. The stake,which was transferred to Raiffeisen International in 2004, was convertedinto common shares in May 2006, which– according to the contract – from then on enabled Raiffeisen International to sell its shares. With total assets of USD 9.9 billion, BTA is the second largest bank in Kazakhstan.
Raiffeisen International operates one of the leading banking networks inCEE with subsidiary banks and leasing companies in 16 markets. More than11 million customers are attended to through more than 2,700 businessoutlets. Representative offices in Lithuania and Moldova complement theGroup''s presence in the region. Raiffeisen International is a fullyconsolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB),which owns 70 per cent of the common stock. The remaining 30 per cent isfree float, the shares are traded on the Vienna Stock Exchange. RZB is aleading corporate and investment bank in Austria and the centralinstitution of the Austrian Raiffeisen Banking Group, the country''slargest banking group.
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