Burgan Bank, one of Kuwait's leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced that it has entered into an agreement with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen, Turkey. Under the terms of the SPA, Burgan Bank has agreed to acquire the stake for a consideration value of TRY641mn (KD99m) 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 EFG amounting to EURO214m (KD78m). The total consideration will be funded fully from Burgan's existing internal cash resources. The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait ("CBK") and Turkey's Banking Regulation and Supervision Agency (BRSA). Eurobank Tekfen was established in 1989 by Tekfen Group as an investment and finance bank. EFG acquired a 70% stake in the Bank in 2007 to further its regional presence. As at 30 September 2011, Eurobank Tekfen had total assets of TRY5,428mn, net customer loans of TRY2,190m, customer deposits of TRY2,075m and shareholders' equity of TRY660m. The Bank has extensive geographic coverage within Turkey through its network of 60 branches. The Turkish economy and banking sector have continued to demonstrate significant positive performance and resilience throughout the global financial crisis and offer opportunities for continued long term expansion. Turkey's large, growing and young population, combined with strategic positioning between Europe and the Middle East offers strong potential for further economic growth in the medium-to-long term, with increasing business flows with the Middle East. Press Release
