Emirates NBD to Acquire Stake in Turkey's Denizbank

Press release

Published January 30th, 2018 - 11:59 GMT

Emirates NBD has commenced initial strategic discussions with Sberbank of Russia regarding Denizbank.

Emirates NBD Bank in a statement revealed that it has commenced initial strategic discussions with Sberbank of Russia (Sberbank) regarding Denizbank A.Ş. (Denizbank), including the possibility of Emirates NBD acquiring Sberbank's existing shareholding in Denizbank.

Discussions are at a very preliminary stage and there is no certainty that any transaction will take place. A further announcement will only be made if there is a material development.

DenizBank was founded in 1938 as a state-owned bank to provide funding for the developing Turkish maritime sector. Acquired by Zorlu Holding from the privatisation Administration as a banking licence in early 1997, DenizBank was later acquired in 2006 by Dexia Group, a Franco-Belgian financial institution. Dexia purchased a 75 per cent stake for $2.44 billion from Zorlu Holding with the remaining 25 per cent of the shares held publicly.

Later in 2011, Dexia announced that DenizBank will be put up for sale and was later acquired in 2012 by Sberbank for $3.6 billion. Sberbank’s major shareholder is the Central Bank of Russia, which owns 50 per cent of the bank’s share capital plus one voting share, while the remaining shareholder base is represented by a wide range of international and domestic investors.

Source: CPI

Background Information

Emirates NBD

Emirates NBD, the leading banking group in the region, was formed on 19 June 1963, when H.H. Late Sheikh Rashid bin Saeed Al Maktoum signed the Charter of Incorporation of the National Bank of Dubai (NBD) which became the first National Bank established in Dubai and the United Arab Emirates (UAE). With the blessings of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, NBD merged with Emirates Bank International (EBI) on 06 March 2007, to form Emirates NBD, the largest banking group in the region by assets. On 16 October 2007, the shares of Emirates NBD were officially listed on the Dubai Financial Market (DFM). The merger between EBI and NBD to create Emirates NBD, became a regional consolidation blueprint for the banking and finance sector as it combined the second and fourth largest banks in the UAE to form a banking champion capable of delivering enhanced value across corporate, retail, private, Islamic and investment banking throughout the region.