Ziraat Bank recently announced that it has stopped unofficial acquisition talks with Bank Asya, stating that its priorities are contradicting with the acquisition.
Deputy prime minister Ali Babacan confirmed earlier on the 6th August that Ziraat was considering the acquisition of Bank Asya. Bank Asya is one of only four participation banks in Turkey and this move was considered to be part of Ziraat Bank’s plans to enter into the Islamic participation bank sector. Ziraat Bank was considering the purchase Bank Asya as an alternative to establishing a new bank for Islamic banking.
According to the information sent by Ziraat Bank to the Public Disclosure Platform (KAP) on the 21st August, Ziraat Bank decided not to start official negotiations for the acquisition citing that its priorities contradict with the acquisition at this point. This statement came after Istanbul Borsa’s decision to suspend trading on Bank Asya’s shares until the uncertainty regarding its ownership is resolved.
In addition to the above Bank Asya news, the Capital Markets Board did not approve a Sukuk issuance in the amount of TRY140 million (US$64.44 million), which was planned to be issued by Bank Asya’s asset leasing subsidiary, Asya Varlık Kiralama.
Halkbank is considering quitting the insurance sector
The state-owned lender Halkbank, which has also expressed plans to enter the participation banking sector, is planning to sell shares in its insurance subsidiaries as the lender considers options to exit the insurance sector.
Halkbank has announced that it has appointed its general directorate for course of management concerning the sale of its direct or indirect shares in Halk Insurance and Halk Life and Pension companies partially or as a whole through Privatization Administration of Turkey.
As per to a statement from the KAP, Halkbank is considering to acquire its subsidiaries’ shares in Halk Pension and Halk Life and Pension before the possible sale transaction.
According to data published by Insurance Association of Turkey, over the first six months of 2014 Halk Insurance was in receipt of 2.26% of TRY13.27 billion (US$6.12 billion) in insurance premiums collected in Turkey, making the company the 14th biggest by premiums over the period, down from being the 13th biggest over the same period in 2013.
Ali Ceylan is a partner at Baspinar & Partners Law Firm. He can be contacted at
[email protected]
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