Qatar’s Lesha Bank Completes Acquisition of Kazakhstan’s Bereke Bank
Kazakhstan’s Baiterek National Holding announced on October 8, 2023, that Qatar’s Lesha Bank has successfully acquired Bereke Bank, transferring full ownership. The acquisition is expected to enhance competition in Kazakhstan’s banking sector and support economic growth. Lesha Bank’s CEO highlighted the strategic significance of the acquisition, which was finalized for 65 billion tenge (approximately $134.9 million). The deal also paves the way for future Qatari investments in Kazakhstan.
On October 8, 2023, Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank announced the successful completion of the acquisition of Bereke Bank, marking a notable milestone in Kazakhstan’s financial sector. This transaction involved the transfer of 100% ownership of Bereke Bank, one of the largest banks in Kazakhstan, which is poised to continue meeting its obligations to clients while upholding the current terms and conditions for existing products. The bank plans to operate as a universal commercial entity, emphasizing its stable growth and adherence to capital adequacy and liquidity requirements. The press release from Baiterek National Holding articulated that the introduction of a new strategic investor aims to enhance competition among second-tier banks, deploy modern technologies, and broaden lending capabilities to stimulate the real economy. The statement quoted, “Baiterek Holding aimed to create conditions for stabilizing the bank’s operations and attracting a strategic investor. The completion of this deal is a significant event for Kazakhstan’s financial sector.” Lesha Bank, previously known as Qatar First Bank, is a Shari’a-compliant investment bank headquartered in Qatar, officially licensed by the Qatar Financial Center Regulatory Authority. The CEO of Lesha Bank, Mohammed Ismail Al Emadi, remarked, “This acquisition marks a strategic step in strengthening our investment portfolio and reinforces the collaborative ties between our countries. It aligns with our long-term vision of fostering cross-border opportunities and expanding in international markets.” The acquisition concluded at a purchase price of 65 billion tenge, approximately $134.9 million, according to the exchange rate at the time of the transaction’s finalization. As part of its operational scope, Lesha Bank focuses on investment banking and asset management, providing services across the markets of Qatar, the United States, Europe, and the Middle East. Furthermore, there are expectations that Qatari entities will invest nearly $20 billion into prospective projects in Kazakhstan in the foreseeable future.
The acquisition of Bereke Bank by Lesha Bank represents a significant strategic move within Kazakhstan’s banking sector, reflecting efforts to enhance financial stability and attract foreign investment. Kazakhstan has been actively working to strengthen its financial infrastructure and promote economic growth, signaling an increasing interest from international investors, particularly from the Gulf region. The transaction is not only critical for Lesha Bank’s expansion ambitions, but also for fostering a competitive banking environment in Kazakhstan, aligned with the country’s economic development goals.
In summary, the acquisition of Bereke Bank by Lesha Bank signifies a strategic enhancement of Kazakhstan’s financial landscape, promoting competition and innovation within the banking sector. The deal, finalized for 65 billion tenge, underscores the commitment of both countries to foster stronger economic ties and opens pathways for significant Qatari investments within Kazakhstan’s economy. This acquisition is anticipated to bolster Bereke Bank’s market presence and operational dynamics, ultimately benefiting the clients and stakeholders involved.
Original Source: astanatimes.com
