Herman Gref failed Turkish Gambit

Sberbank and UAE banking group Emirates NBD revised the amount of the transaction for the sale of the Turkish subsidiary of a Russian bank - Denizbank AS In dollars, the price fell by more than $ 400 million. Seven years ago, Sberbank paid $ 750 million more for the asset compared to the agreed transaction price.
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Sberbank and the UAE banking group NBD from the UAE have agreed to reconsider the price of the sale of the Turkish “daughter” of a Russian bank - Denizbank A.S. In accordance with the agreement, which the parties signed on April 2, the price for 99.85% of the bank will be 15.48 billion Turkish liras ($ 2.74 billion). At the same time, the bank's capital at the end of 2018 was 15.51 billion lire. The deal is planned to close in the second quarter of 2019.

Sberbank and Emirates NBD agreed to sell Denizbank back in May last year. Then it was about the sum of 14.6 billion Turkish liras ($ 3.18 billion). Since then, the lira to the dollar has fallen by 17%. Thus, in dollars, the transaction price decreased by $ 440 million.

For the M & A market in Turkey, the sale of Denizbank is the largest deal since 2012, notes Bloomberg, and for the Arab banking group, a record acquisition.

In total, from the sale of Denizbank, taking into account capital and debt, Sberbank expects to receive about $ 5 billion, Reuters quotes the press service of the bank. The bank clarified that the change in the terms of the transaction was due to the fact that its coordination with regulators from different countries took a year and was not completed yet, and the price needed to take into account the results of the past financial year.

Sberbank bought Denizbank in 2012 from the French-Belgian banking group Dexia - the amount of the transaction then amounted to 6.469 billion lire ($ 3.5 billion at that time). “We would never go out of this business if it were not for the sanctions regime. Unfortunately, we cannot receive dividends, we cannot provide financing to our bank, we cannot attract money from the market, ”the head of Sberbank German Gref explained in May the sale of the Turkish subsidiary.