Raiffeisen Bank International AG - Home

Raiffeisen International sells minority stake in Bank TuranAlem

24 August 2006

Raiffeisen International sells minority stake in Bank TuranAlem

Last night, Raiffeisen International Bank-Holding AG signed a contract to sell its minority stake in the Kazakh JSC Bank TuranAlem (BTA) subject to a successful closing, which is expected within the next two weeks. The stake consists of 351,139 common shares, representing 7.7 per cent of BTA’s capital. The package will be sold for € 136.5 million to an investor consortium led by Stockholm based East Capital Explorer Financial Institutions Fund.

“We focus on strategic, not on financial investments and our strategy is to actively manage the banks within our network. Since this is only feasible from a majority shareholder’s position and it is clear we will not achieve this with BTA, we have decided to sell our participation,” said Herbert Stepic, CEO of Raiffeisen International. A sale has been mentioned as a realistic option by Raiffeisen International’s management for several months, should the long-lasting negotiations with BTA’s other shareholders not bear fruit. “Despite our decision, Kazakhstan remains an attractive market for us, which is also underlined by the fact that we run one of the three largest leasing companies of the country,” added Stepic.

Raiffeisen Zentralbank Österreich AG (RZB), the 70 per cent shareholder of Raiffeisen International, acquired the participation in BTA in the form of convertible preference shares in the autumn of 2001. The stake, which was transferred to Raiffeisen International in 2004, was converted into common shares in May 2006, which – according to the contract – from then on enabled Raiffeisen International to sell its shares. With total assets of USD 9.9 billion, BTA is the second largest bank in Kazakhstan.