UniCredit cuts stake in Yapı Kredi

ISTANBUL

Italian lender UniCredit has announced the “successful completion of the accelerated bookbuild offering” to institutional investors of approximately 100.7 billion existing ordinary shares in Yapı ve Kredi Bankası, equal to around 12 percent of the Turkish lender’s issued share capital.

The Italian lender sold the shares at a price of 2.88 Turkish Liras, equivalent to a 4 percent discount to Feb. 5’s closing price of 3 liras.

The stake sale yielded approximately 2.9 billion liras, or some 440 million euros, the bank said.

Following the placement, UniCredit continues to directly own 168.9 billion ordinary shares in Yapı Kredi, equal to approximately 20 percent of the bank’s issued share capital.

The Italian bank’s move followed an agreement with Turkey’s Koç Holding last year.

In November 2019, UniCredit announced it had reached a deal with Koç Holding to cut its stake in Yapı Kredi to below 32 percent as part of moves to simplify its shareholding structure and bolster capital.

Under the deal Koç Holding bought UniCredit’s 50 percent stake in Koç Financial Services (KFS), the joint venture which controls Yapı Kredi.

Yapı Kredi is Turkey’s third-largest bank.

The lender posted a profit of 3.6 billion liras (around $601 million) last year.

The bank’s assets reached 411 billion liras at the end of 2019.