Kazakh President’s Son-in-law & Daughter Dinara Sold 60% Stake In Altyn Bank To China CITIC-Bank

Kazakh President's Son-in-law & Daughter Dinara Sold 60% Stake In Altyn Bank To China Citic Bank Corporation Limited

November 15, 2016, Reuters reported that Kazakhstan’s two biggest lenders, Kazkommertsbank (KKB) KKGB.KZ and Halyk Bank HSBK.KZ (HSBKq.L), are discussing a merger to create a bank with assets of $27 billion that would dwarf its competitors.

The idea of the merger, according to one source, has come from within the family of Nazarbayev, whose daughter Dinara together with her husband Timur Kulibayev has a controlling stake in Halyk. Kulibayev could not be reached for comments.

Commenting on a Reuters report of talks, the Halyk Bank said in a statement: “Indeed, during 2016 within the framework of general discussions a number of scenarios of banking sector developments were considered, which in our view cannot be treated as conducting negotiations.” Bank notes recent press speculation about a potential merger with JSC Kazkommertsbank and responded that Halyk Bank has neither made nor received an offer to merge or otherwise combine with KKB.

Halyk Bank is owned by president’s son-in-law businessman Timur Kulibayev and his wife Dinara Kulibayeva. They own the bank through ” Holding Group Almex”, which owns 63.73% shares of National Bank. Common accumulative fund owns 5.64% of shares of Halyk Bank.

At the beginning of November 2016 it was reported that Halyk Bank announced an agreement for sale a 60% stake of its “daughter” – Altyn bank to to China Citic Bank Corp. Ltd. (CITIC-Bank).

November 17 S&P Global Ratings said that its ratings on Halyk Bank (BB/Negative/B) are unaffected following the bank’s announcement that it is selling a 60% stake in Altyn Bank (formerly HSBC Bank Kazakhstan) to China Citic Bank Corp. Ltd. (CITIC-Bank).

CITIC-Bank was China’s ninth-largest bank in terms of total assets as of Sept. 30, 2016, and is part of a major Chinese state-owned corporation, CITIC Group Corp. (A-/Negative/A-2). The deal is set to be completed in the first half of 2017.