JSC Halyk Bank Completes Acquisition Of 96.81% Of Ordinary Shares In JSC Kazkommertsbank

Halyk Bank Offers To Sell Shares In Kazkommertsbank

JSC Halyk Bank (“Halyk Bank”) hereby announces the completion of transactions for acquisition of 96.81% of ordinary shares in JSC Kazkommertsbank (“Kazkommertsbank”), including 86.09% from Mr K.Kh. Rakishev and 10.72% from joint stock company Sovereign Wealth Fund “Samruk-Kazyna”, in accordance with the sale and purchase agreements entered into on 15 June 2017.

The transactions were completed following satisfaction by the parties of certain conditions precedent, including:

– completion of due diligence by Halyk Bank and the National Bank of the Republic of Kazakhstan (“National Bank”);

– acquisition by Mr. Rakishev of shares in Kazkommertsbank from Mr. N.S. Subkhanberdin and JSC Central Asian Investment Company;

– full repayment of the loan by BTA Bank to Kazkommertsbank;

– receipt of customary approvals from the relevant regulatory bodies in Kazakhstan and other applicable jurisdictions;

– repayment by Kazkommertsbank of 41 billion tenge owed to Samruk-Kazyna for the shares in JSC BTA Bank under the 2014 transaction.

As announced earlier, Halyk Bank is planning to recapitalise Kazkommertsbank for a total of KZT 185 billion (as agreed by the National Bank), which will bring Kazkommertsbank’s capital adequacy ratio in line with those maintained by domestic peers.

Umut Shayakhmetova, Chairperson of the Management Board of Halyk Bank, commented: “Successful completion of a deal to acquire one of Kazakhstan’s largest financial institutions, with its extensive branch network, large volume of client transactions, and presence in a number of foreign jurisdictions, has been a result of a concerted effort of Halyk Bank’s team and its advisors. Involvement of multiple parties, including the state, as represented by the National Bank of Kazakhstan, the Ministry of Finance, and Samruk-Kazyna, provides further testament to the scale of the transaction. In particular, I would like to highlight Halyk Bank’s unprecedented focus on organising comprehensive due diligence of Kazkommertsbank, to ensure successful completion of the deal. As to the new management team of Kazkommertsbank, the shareholders have assigned them a task to devise and implement a new development strategy for the bank within Halyk Group, which, among other things, will help deliver significant group-wide synergies while creating additional shareholder value. We will do our best to sustain and enhance the quality of client service, continue to advance the bank’s information technologies, restore customer lending and retain Kazkommertsbank’s professional staff.”

About Halyk Group

JSC Halyk Bank and its subsidiaries (together – Halyk Group) is Kazakhstan’s leading financial services group, operating across a variety of segments, including retail, SME & corporate banking, insurance, leasing, brokerage and asset management. Halyk Group also operates in Georgia, Kyrgyzstan and Russia. With total assets of KZT 5,201.1 billion, Halyk Bank is Kazakhstan’s leading lender. The Bank has the largest customer base and broadest branch network in Kazakhstan, with 506 branches and outlets across the country. Halyk Bank has been listed on the Kazakhstan Stock Exchange since 1998 and on the London Stock Exchange since 2006.

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