MOSCOW, May 22 (PRIME) -- Russia’s top lender Sberbank has signed a binding agreement to sell 99.85% in its Turkish unit Denizbank to Emirates NBD for 14.609 billion Turkish liras, or nearly U.S. $3.2 billion, Sberbank said in a statement on Tuesday.
“Emirates NBD Bank and Sberbank announce that they have entered into a definitive agreement whereby Sberbank will sell its entire 99.85% stake in Denizbank to Emirates NBD…the consideration for 99.85% equals 14.609 billion Turkish liras under a locked box mechanism, based on consolidated equity capital of Denizbank as of October 31, 2017,” the bank said.
“In addition, Emirates NBD will pay interest on the consideration for the period between October 31, 2017 and the transaction closing date. All profits from the locked box date till closing date will be to Emirates NBD’s account. As part of the transaction, and on closing, Emirates NBD will assume ownership of Denizbank’s subordinated debt previously provided by Sberbank.”
The deal is expected to close in 2018. The closing of the deal is subject to regulatory approval in Turkey, Russia, the United Arab Emirates and other relevant jurisdictions where Denizbank operates.
Sberbank CEO German Gref said as quoted by the bank: “The decision to sell Denizbank is prompted by a change in Sberbank Group’s international strategy and will allow us to focus further on development of ecosystem of Sberbank.”
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