Merger Of Qazkom And Halyk Bank Impossible

Betted On Kazakhstan’s Largest – And Cheapest – Bank

Merger of Halyk Bank and Qazkom is impossible, said Umut Shayakhmetova, chairwoman of Halyk Bank.

“I’d like to note it is a friendly bargain,with full understanding of the process. Kenes Rakishev, an individual, majority shareholder, made a proposal to consider Qazkom acquisition. We have a good dialogue. Merger of two banks is impossible – there is a risk of creation of a clumsy financial structure. Within the frameworks of this bargain we are negotiating with Halyk Bank and the Government,” she said.

In her words, 2.1 trln tenge allocated by the Government will be injected into the capital of Kazkommertsbank.

“It was said that 2.1 trln tenge would be allocated through the fund of problematic assets, they will go into Qazkom capital. It is not a direct injection in the capital. The bargain is more complicated. I cannot disclose the bargain’s details. Halyk Bank is supposed to take part with its capital, the volume will be calculated in the result of due diligence. It has been initiated, it involves the National bank with its lawyers, Halyk Bank has hired external auditors and lawyers. It is a deep process. It will take 2-3 months,” she added.

She said the banks’ depositors have no reason for concern for their money saving.

Halyk – the Central Asian nation’s No.2 bank by assets – and KKB provisionally agreed to the takeover earlier this month. The central bank said at the time that the authorities planned to support the deal by helping KKB resolve bad loans.

Fitch Ratings has placed Halyk Bank of Kazakhstan’s (HB) ‘BB’ Long-Term Issuer Default Ratings (IDRs) and its ‘bb’ Viability Rating (VR) on Rating Watch Negative (RWN). Fitch has also placed the ‘CCC’ Long-Term IDRs of Kazkommertsbank (KKB) on Rating Watch Evolving (RWE) and downgraded the bank’s VR to ‘f’ from ‘ccc’.

The rating actions follow recent announcements by the banks and the Kazakh authorities on HB’s potential acquisition of a controlling stake in KKB.