Bank Hapoalim has completed the acquisition of Demir Kazakhstan Bank, which is claimed to be the first bank in Kazakhstan and in all of Central Asia to be purchased by an Israeli bank.
The acquisition of Demir Kazakhstan Bank (DKB) was performed through BankPozitif, a Turkish bank in which Bank Hapoalim acquired a 57.55 percent stake last year, and is an additional step in the Turkish bank's development and in the implementation of Bank Hapoalim's international strategy.
The total cost of the investment in DKB is approximately $70 million, of which $56 million will be paid to the sellers, while the additional $14 million will be used to increase DKB's capital to $40 million immediately following the acquisition.
Dani Dankner, chairman of Bank Hapoalim, commented: "The acquisition of DKB in Kazakhstan is another step in the realization of the long-term strategy of Bank Hapoalim, which aims to significantly expand the percentage of our total activity represented by international operations. This further strengthens Bank Hapoalim's position as a global bank with worldwide operations, including in emerging markets."
Source: Banking Business Review Date: 26.11.2007 [ID: 145]