Biggest Dubai Bank Said to Plan March Bid for Sberbank Unit
Dubai's Biggest Bank Is Said to Plan March Bid for Sberbank Unit
(Bloomberg) -- Emirates NBD PJSC is preparing to submit a bid for Sberbank PJSC’s wholly-owned Turkish unit in March, people with knowledge of the matter said.
Dubai’s biggest bank is evaluating an offer for Denizbank AS, the people said, asking not to be identified because the talks are private. It could take several months before Sberbank decides whether or not to sell, they said.
Emirates NBD last month said it started preliminary discussions for the Denizbank purchase. A deal for Sberbank’s 99.9 percent holding could be valued at as much as $4.12 billion, according to Bloomberg calculations. Denizbank had a book value of $3.4 billion at the end of 2017 and Turkish banks trade at an average of 1.2 times book value, according to data compiled by Bloomberg.
Sberbank fell as much as 0.6 percent in Moscow to 265.5 rubles, while Emirates NBD declined 1.2 percent to 8.8 dirhams in Dubai, the most in two weeks. Denizbank, which has less than 0.1 percent of its shares trading in Istanbul, fell more than 5.6 percent to 6.95 liras.
Sberbank Chief Executive Officer Herman Gref on Feb. 15 told Bloomberg that there’s no time frame for an offer for Denizbank. The bank received “a very good offer” for the unit after U.S. and European sanctions on Russia made it difficult for the lender to operate in Turkey, he said on Feb. 13.
Emirates NBD and Denizbank declined to comment.
Gulf lenders are seeking to boost their presence in Turkey with acquisitions and license applications as they face limited expansion opportunities at home. Qatar National Bank in 2016 bought National Bank of Greece SA’s Turkish unit for 2.75 billion euros ($3.4 billion), while Commercial Bank of Qatar acquired a 71 percent stake in Alternatifbank AS from Anadolu Group in 2013.
--With assistance from Arif Sharif and Jake Rudnitsky
To contact the reporters on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net, Kerim Karakaya in Istanbul at kkarakaya2@bloomberg.net, Asli Kandemir in Istanbul at akandemir@bloomberg.net.
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Shaji Mathew
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