The Best of GRReporter
flag_bg flag_gr flag_gb

The National Bank of Greece sells Turkish Finansbank to Qatar

22 December 2015 / 11:12:25  GRReporter
3098 reads

The National Bank of Greece has decided to sell its shares in the Turkish Finansbank to the National Bank of Qatar. Qatar’s financial institution will repay the debts of Finansbank amounting to $910 million and will pay the Greek financial institution 2.75 billion euro. Thus, the final price of the transaction will become 3.5 billion euro and Qatar National Bank will control 99.81% of Finansbank shares.
    After this sale, the capitalization index of the National Bank of Greece will exceed 19%, thus making it the most well capitalized Greek bank. The institution acquired the Turkish Finansbank ten years ago and the decision of bank president of the time Takis Arapoglou to invest in the Turkish banking sector is considered by experts the most successful Greek banking transaction ever.

     The sale of Finansbank actually deprives the National Bank of Greece of its most profitable subsidiary bank, shrinking it to the parameters it had before the years 2004-2005. Obviously, the decision was not easy, since yesterday the Management Board was in session for more than five hours. In addition to Qatar, the Turkish Garanti Bank had also submitted a bid but the Management Board preferred the Arab partner. The transaction will be completed within two to three months, as it is awaiting the approval of Turkish supervisors.
Qatar has tried to acquire Finansbank since 2012, but without success. The previous management of the National Bank of Greece did not want to sell 100% of the shares and discussed the sale of 20-25% of them, a condition that did not satisfy the investors from Qatar.
"I am glad that the new owner of Finansbank has a long-term interest in the Turkish banking sector and will continue to develop and strengthen Finansbank," said CEO of the National Bank of Greece Leonidas Fragkiadakis.

Tags: Qatar National BankNational Bank of GreeceFinansbankSaleTurkish banking sectorCapitalization index of Greek banks
GRReporter’s content is brought to you for free 7 days a week by a team of highly professional journalists, translators, photographers, operators, software developers, designers. If you like and follow our work, consider whether you could support us financially with an amount at your choice.
You can support us only once as well.
blog comments powered by Disqus