{"id":92246,"date":"2024-05-22T00:00:00","date_gmt":"2024-05-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/fab-closes-in-on-acquisition-of-yapi-kredi-al-mal-capital-reit-adds-dubai-school-to-its-portfolio\/"},"modified":"2024-05-22T00:00:00","modified_gmt":"2024-05-22T00:00:00","slug":"fab-closes-in-on-acquisition-of-yapi-kredi-al-mal-capital-reit-adds-dubai-school-to-its-portfolio","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/05\/22\/fab-closes-in-on-acquisition-of-yapi-kredi-al-mal-capital-reit-adds-dubai-school-to-its-portfolio\/","title":{"rendered":"FAB closes in on acquisition of Yapi Kredi + Al Mal Capital REIT adds Dubai school to its portfolio"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>FAB is a step closer to acquiring a 61.2% Stake in Yapi Kredi: <\/strong>First Abu Dhabi Bank (FAB) is reportedly advancing in its <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/c6e11ec4-9aa6-42d4-943c-3558482a919b\/fab-considers-acquisition-of-turkish-lender%253cmark%253e-yapi-kredi%253c%2Fmark%253e\" style=\"\" rel=\"noopener\">discussions<\/a> with Turkish industrial conglomerate Koc Group about a potential takeover of its 61.2% stake in Turkey's fourth-biggest private bank Yapi Kredi for USD 8 bn, <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/deals\/emirati-bank-fab-advanced-talks-buy-turkeys-yapi-kredi-sources-say-2024-05-21\/\" style=\"\" rel=\"noopener\">Reuters<\/a> reports, citing three undisclosed sources close to the matter. Talks are now being finalized after \u201cseveral months of negotiations,\u201d which initially saw FAB offer to pay USD 7.5 mn for the stake, while Koc sought out USD 8.5 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Disagreements over the bank\u2019s valuation could throw a wrench in the works, <\/strong><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-21\/uae-bank-s-talks-with-turkish-lender-hit-snag-on-valuation\" style=\"\" rel=\"noopener\">Bloomberg<\/a><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-21\/uae-bank-s-talks-with-turkish-lender-hit-snag-on-valuation\" style=\"\" rel=\"noopener\"><\/a> reports, citing people in the know. Koc is still reportedly seeking a higher price than what FAB is currently willing to offer. Due to these disagreements hampering the stake sale, FAB has not formally begun due diligence on the stake, despite negotiations being ongoing for several weeks now, according to the sources. While neither lender has tapped an adviser, the banks are still moving forward with the talks. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Turkish lender\u2019s market was valued at USD 7.5 bn earlier this month<\/strong>, though its value has now gone up to USD 10 bn, after shares rallied 10% yesterday. FAB\u2019s USD 8 bn bid would value the bank at USD 13-14 bn. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Current<\/strong><strong> ownership: <\/strong>Koc Financial Services holds a 41.0% stake in Yapi Kredi, while Koc Holding holds a little over 20.22% in the Istanbul-based commercial banking company.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s next?<\/strong> While declining to comment on the acquisition, the Emirates\u2019 biggest lender acknowledged \u201cthe recent media speculation,\u201d in a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/5\/1700.pdf\" style=\"\" rel=\"noopener\">disclosure (pdf)<\/a>, adding that the bank is focused on \u201cexecuting its growth strategy.\u201d The lender also said that it could be holding talks \u201con growth potential to its operational network.\u201d Meanwhile, Koc Holding confirmed in a statement to the Istanbul bourse that it is in preliminary talks to sell Yapi Kredi shares. Koc also said it holds the option to negotiate \u201cpossible alternatives\u201d in its portfolio, signaling that the FAB sale is not final.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>FAB has been eyeing the Turkish bank for some time: <\/strong>FAB mulled an acquisition of Turkish lender Yapi Kredi, valued at USD 7.6 bn, in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/c6e11ec4-9aa6-42d4-943c-3558482a919b\/fab-considers-acquisition-of-turkish-lender%253cmark%253e-yapi-kredi%253c%2Fmark%253e\" style=\"\" rel=\"noopener\">April<\/a>, as part of its global expansion strategy. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- Ties between the UAE and Turkey have warmed as of late: <\/strong>Last year, <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/turkeys-erdogan-ends-gulf-tour-with-abu-dhabi-visit-2023-07-19\/\" style=\"\" rel=\"noopener\">the UAE<\/a> inked over USD 50 bn in agreements with Turkey during a visit from Turkish President Recep Tayyip Erdogan, including commitments to develop energy and natural resources projects and a trade agreement. Dubai Islamic Bank has also shown interest in Turkish investments, <a target=\"_blank\" href=\"https:\/\/www.dib.ae\/about-us\/news\/2023\/09\/28\/dubai-islamic-bank-a-leading-financial-institution-in-the-uae-enters-turkish-digital-banking-and-financial-technology-sector-via-an-equity-investment-in-tom-group-of-companies\" style=\"\" rel=\"noopener\">announcing in September<\/a> that it plans to purchase a 20% stake in Turkey's TOM Group of Companies.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>FAB also has its eyes on an Indian lender:<\/strong> FAB reportedly sought to acquire a 25% stake in Yes Bank, India's sixth-largest private sector lender, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/03de8688-be8d-48d9-9d79-49e4e848a349\/dubai-fintech-summit-kicks-off-%2B-fab-eyeing-a-stake-in-yes%253cmark%253e-bank%253c%2Fmark%253e%3F\" style=\"\" rel=\"noopener\">earlier this month<\/a>. The lender held talks with the Reserve Bank of India, India\u2019s central bank, to discuss the potential transaction.<\/p>\n<p class=\"tag-border-left\">IN OTHER M&amp;A NEWS- <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Al Mal Capital adds a Dubai school to its portfolio: <\/strong>Al Mal Capital\u2019s real estate investment trust\u2019s (REIT) board approved the purchase of a school in Dubai for a total of up to AED 415 mn, according to a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/5\/1686.pdf\" style=\"\" rel=\"noopener\">DFM disclosure (pdf)<\/a>, without disclosing the name of the school. The transaction will see the REIT acquire the British curriculum school at an estimated value of AED 395 mn, with the financial costs amounting to up to AED 20 mn. The new acquisition brings the asset manager\u2019s portfolio value to approximately AED 1 bn. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background: <\/strong>The Dubai-based asset manager unveiled in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/35ee8cde-bbca-4165-b2d0-e36485688950\/al-mal-capital-reit-completes-aed-180-mn-capital-increase#:~:text=What%E2%80%99s%20next%20for,next%20two%20months.\" style=\"\" rel=\"noopener\">April<\/a> its plan to acquire an AED 400 mn educational asset as well as a healthcare facility later in the year. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- <\/strong>The Dubai-investments unit underwent an AED 180 mn capital increase last month, bringing the REIT\u2019s total capital to over AED 540 mn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SOUND SMART- <\/strong>A REIT or a real estate investment trust is a mutual fund that owns, finances or manages income-generating real estate assets \u2014 commercial, residential, office, and other properties. Some will also invest in real-estate-related securities or private equity transactions that are directly related to the industry.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s next?<\/strong> The REIT could kick off <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/b1680788-cbf0-42c8-a839-7105f7bdf785\/opec%2B-steady-on-voluntary-production-cuts-%2B%253cmark%253e-al%253c%2Fmark%253e%253cmark%253e-mal%253c%2Fmark%253e%253cmark%253e-capital%253c%2Fmark%253e-plans-to-acquire-a-dubai-school-soon\" style=\"\" rel=\"noopener\">another capital increase<\/a> in 4Q 2024, with plans to up the number of units available to 1.5-1.8 bn units by year-end, Al Mal Capital MENA Direct Investments Director Sanjay Vig previously said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Emirates\u2019 biggest lender has reportedly been in talks to acquire 61.2% in Yapi Kredi<\/p>\n","protected":false},"author":1,"featured_media":92247,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2392],"tags":[785,159,7,212,60],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-92246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-watch-2","tag-al-mal-capital","tag-banking","tag-enterpriseam-uae","tag-fab","tag-ma-watch","wpautop","entry"],"acf":{"mongo_id":"5ebf6e6e-458d-4b1b-a4a5-6a07267a0d53","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/2\/25.jpg","photo_position":"above","homepage_title":"","full_issue_title":"FAB closes in on acquisition of Yapi Kredi + Al Mal Capital REIT adds Dubai school to its portfolio","related_issue":[92242],"teaser":"The Emirates\u2019 biggest lender has reportedly been in talks to acquire 61.2% in Yapi Kredi","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.e8bcd385-6d79-4250-a4cd-7c4687d1b984.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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