Kinstellar advises Halyk Bank JSC on its acquisition of Kazkommertsbank JSC
July 2017 - Kinstellar has advised the leading Kazakhstan bank, Halyk Bank JSC, on its acquisition of Kazkommertsbank JSC from Mr Kenges Rakishev and Sovereign Wealth Fund Samruk-Kazyna JSC. The acquisition was completed on 5 July 2017. According to the agreements, Halyk Bank acquired 96.81% of ordinary shares in Kazkommertsbank.
This acquisition represents a landmark M&A transaction in Kazakhstan, generally, and in the country’s banking sector, in particular. At the time of the acquisition, Halyk Bank and Kazkommertsbank were the largest and the second largest banks in Kazakhstan by assets, respectively. As a result of the acquisition, Halyk Bank became the undisputed leader in Kazakhstan’s financial sector and the third largest private financial group in the CIS.
As part of the transaction, immediately after the acquisition Halyk Bank recapitalised Kazkommertsbank with a total of KZT 185 billion (approximately USD 570 million). The transaction also involved repayment of the KZT 2.4 trillion (approximately USD 7.4 billion) loan provided by Kazkommertsbank to BTA Bank JSC.
The Government of Kazakhstan (represented by the Ministry of Finance) and the National Bank of Kazakhstan were, among others, parties to the transaction.
The Kinstellar team has advised its long-standing client, Halyk Bank, on all of its major transactions in Kazakhstan, beginning with its IPO in 2006. In particular, the Kinstellar team previously advised Halyk Bank on its attempted acquisition of BTA Bank in 2013, successful acquisition of HSBC’s subsidiary bank in Kazakhstan in 2014 and, currently, on its proposed sale of a majority stake in Altyn Bank (formerly HSBC Bank Kazakhstan) to CITIC Bank.
The Kinstellar team was led by Adlet Yerkinbayev (Partner) who was assisted by Kuanysh Shekerbekov (Associate). Other team members included Kairat Baizakov (Of Counsel), Irina Voloboi (Senior Associate), Lena Makarenko (Senior Associate), Dina Berkaliyeva (Senior Associate), Assel Mussina (Associate), Murat Madykov (Associate), Yerlan Akhmetov (Associate), Yerbol Konarbayev (Associate), Arman Kazhdarov (Associate), Valeriya Khan (Associate).
For more information, please contact Adlet Yerkinbayev, Partner, at .