China’s largest lender acquires Turkish bank

ISTANBUL

China’s largest listed bank, the Industrial and Commercial Bank of China (ICBC) has said it has agreed to pay 669 million Turkish Liras ($314.73 million) for GSD Holding’s 75.5-percent shares in Turkish lender Tekstilbank.

After the announcement of the deal, trading shares of Tekstilbank and GSD Holding were suspended temporarily.

Borsa Istanbul said the shares were halted upon the two companies’ requests, according to the announcement made to the Public Disclosure Platform (KAP).

While GSD controlled 75.5 percent of the Turkish lender, the remaining 24.6 percent was traded at the stock exchange.

In a statement released today, the Beijing-based lender said it could also bid for the remainder of the company.

Tekstilbank shares closed the morning session with a 0.68 percent drop at 1.46 liras ahead of the sale’s announcement, while GSD Holding shares were traded at 1.12 liras with a 0.88 percent plunge.
The deal is to be inked today as a result of long-running negotiations that lasted over a year.

According to a stock exchange filing issued by GSD Holding, the deal’s amount will be paid in U.S. dollars after being calculated according to the foreign exchange rates of the Turkish Central Bank.
The bank’s market value is calculated at 617.4 million liras, based on the price of the shares at the closure of April 28.

GSD Holding said the contract will be valid after receiving the required permission from the appropriate Chinese and Turkish authorities.