Halyk Bank to buy controlling stake in Kazkom

ASTANA. KAZINFORM - JSC Halyk Bank announced it has signed a non-binding memorandum of understanding for the potential acquisition of a controlling stake in JSC Kazkommertsbank (KKB), Kazinform correspondent reports citing the press service of Halyk Bank.

It is noted that the parties of the memorandum among others are: the Government of Kazakhstan, National Bank, Halyk Bank, Kazkommertsbank, JSC BTA Bank and Mr. Kenes Rakishev (major shareholder in KKB).

"The memorandum describes the fundamental principles of the potential transaction, actions of its implementation, as well as the procedure of state's participation. This is a non-binding memorandum, and any potential transaction may be made only after Halyk Bank and National Bank of the Republic of Kazakhstan conduct a standard due diligence, terms between the parties are finalized, and all the relevant domestic, corporate and regulatory approvals received and other preconditions are fulfilled", the statement reads.

Halyk Bank evaluates the potential deal with respect to the interests of its shareholders and other stakeholders.

"Thus, any decision on acquisition of KKB shares will be made in accordance with international standards, international rules relating to listing of global depository receipts of Halyk Bank on London Stock Exchange and legislation of Kazakhstan, only after obtaining satisfactory results of the due diligence, conducting all appropriate procedures and in accordance with the principles of any future transaction on market conditions and in accordance with the principle of fair market value", it says.

According to the press service of the National Bank of Kazakhstan, "in accordance with the memorandum JSC Halyk Bank of Kazakhstan intends to buy shares of JSC Kazkommertsbank.

"In turn, for effective implementation of the potential transaction on purchase of JSC Kazkommertsbank's shares, Government of Kazakhstan and National Bank of the Republic of Kazakhstan intend to provide financial support through the purchase of problem assets by JSC Fund of Problem Loans. Earlier, National Bank of Kazakhstan was informed by the management and shareholders of the banks about the beginning of the negotiations between JSC Halyk Bank of Kazakhstan and JSC Kazkommertsbank", press service of the financial regulator reported.