Kazakh billionaire Bulat Utemuratov has finalized the deal to purchase Alliance Bank and TemirBank from Samruk-Kazyna Sovereign Wealth Fund, Tengrinews
Earlier this year, President Nazarbayev instructed Samruk-Kazyna to sell its share in Alliance Bank and Temirbank. At about the same time Chairman of Alliance Bank Maksat Kabashev said that the cost of Alliance Bank and Temirbank could range from $500 million to $1 billion. However, the price paid by Utemuratov to purchase these banks has not been unveiled yet.
The billionaire will purchase 79.88% of the common stock in Temirbank and 16% of the common and preferred stock in Alliance Bank. This leaves Samruk-Kazyna the controlling shareholder of Alliance Bank with 51% of the common and preferred shares.
Billionaire Utemuratov, who is moving to rebuild his banking assets in Kazakhstan, said that this purchase agreement became the first step to reenergizing and restoration of the two banks that have suffered from the financial crisis. “The process of recovery of Temirbank will start immediately after the closing of the deal. As for Alliance Bank – it will be a joint effort together with Samruk Kazyna and the creditors to determine the path to restore the capitalization, liquidity and profitability of the bank,” said Utemuratov. The billionaire investor believes his experienced team will be able to “bring the two banks to an appropriate level”.
Deputy cChairman of Samruk-Kazyna National Wealth Fund Yelena Bakhmutova said that the fund's withdrawal from these two commercial banks would have a positive effect on the Kazakhstan's banking sector and the economy in general.
The purchase will be finalized in the first quarter of 2014 after the regulatory authorities approve the deal.