Potential Deal With Kazkommertsbank Unlikely To Be Positive For Halyk Bank Of Kazakhstan’s Shareholders – Sberbank CIB
A potential deal between Kazkommertsbank and Halyk Bank of Kazakhstan is unlikely to be deemed positive for the shareholders of the latter, reports Interfax-Kazakhstan with reference to CIS Market Daily report of Sberbank Investment Research, a business unit of Sberbank.
The banks confirmed on Friday that they are in preliminary talks about a possible deal.
Sources told Reuters in November that such a deal would create a bank four times the size of the country’s current No. 3 lender in terms of assets and could involve the write-down of bad assets belonging to Kazkommertsbank, possibly with some help from the state.
Oleg Smolyakov, central bank deputy chairman, said in a statement on Tuesday that the banks would need to get the regulator’s approval prior to any deal.
Kazakh President Nursultan Nazarbayev’s daughter Dinara and her husband Timur Kulibayev have a controlling stake in Halyk, which has assets of around $14 billion.
Kazkommertsbank, with assets of $15.7 billion, is controlled by local businessman Kenges Rakishev, a son-in-law of Nazarbayev’s long-time confidant, Deputy Prime Minister Imangali Tasmagambetov.
The two lenders account for 37 percent of Kazakhstan’s banking system assets.