Potential Deal With Kazkommertsbank Unlikely To Be Positive For Halyk Bank Of Kazakhstan’s Shareholders – Sberbank CIB

Kazakh Central Bank Expect Merger Of Banks To Go On

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.

London-listed Halyk Bank, which has smaller assets but bigger capital and market capitalisation than Kazkommertsbank, in a separate statement described the potential deal as an acquisition, but provided no other details.

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.

(Interfax-Kazakhstan, Reuters)