Eurobank Tekfen sale is nearing completion

KUWAIT - Reuters

Kuwaiti Burgan Bank has been given the green light to purchase Eurobank Tekfen from Kuwait’s Central Bank.

The Kuwaiti Central Bank announced on Oct. 6 that it has approved Kuwaiti Burgan Bank’s bid to acquire Greek EFG Eurobank’s Turkish subsidiary, Eurobank Tekfen. The deal, scheduled to be completed in the third quarter of 2012, would increase the Greek group’s core tier I capital by almost 300 million euros and improve its liquidity position by 800 million.

Burgan Bank had agreed to purchase 70 percent of Eurobank Tekfen from EFG Eurobank for $355 million (642 million Turkish Liras) in April. In April Burgan Bank also purchased Tekfen’s 29.26 percent stake in Eurobank Tekfen.

Burgan Bank is now awaiting the approval of Turkey’s regulators to seal the deal. Burgan Bank is the banking arm of Kuwait Projects Co (KIPCO).