Turkish authorities approve Burgan Bank's purchase

Burgan Bank announced Saturday it had received the approval of Turkey's Banking Regulation and Supervision Agency (BRSA) regarding the purchase agreement with Eurobank EFG to acquire Turkey's Eurobank Tekfen. This comes after Burgan Bank received the go-ahead for the purchase of the Turkish from Kuwait's Central Bank, said Burgan Bank Board Chairman Majed Essa al-Ajeel in a press statement. Al-Ajeel pointed out that with such a purchase Burgan Bank acquires an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey. He added that Burgan bank would introduce a wide array of financial products to its new customers in Turkey. Under the terms of the agreement, Burgan Bank has agreed to acquire the stake for a consideration value of TRY 641 million (KD 99 million/USD 355 million) representing 0.98x based on September 30th, 2011 shareholders' equity. In addition, Burgan Bank has also agreed to acquire an additional portfolio of Turkish loans from Eurobank EFG amounting to EUR 214 million (KD 78 million/USD 279 million). The total consideration will be funded fully from Burgan's existing internal cash resources. Eurobank Tekfen was established in 1989 by Tekfen Group as an investment and finance bank. EFG acquired a 70 percent stake in the Bank in 2007 to further its regional presence. As at 30 September 2011, Eurobank Tekfen had total assets of TRY 5.428 billion, net customer loans of TRY 2.19 billion, customer deposits of TRY 2.075 billion and shareholders' equity of TRY 660 million. The Bank has extensive geographic coverage within Turkey through its network of 60 branches. Established in 1977, Burgan Bank is the youngest commercial Bank based in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail and private bank customer base. Burgan Bank has four majority owned subsidiaries: Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq), Jordan Kuwait Bank - JKB (Jordan) and Tunis International Bank - TIB (Tunisia), (collectively known as the "Burgan Bank Group"). The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base.