Dexia Aquires Controlling Interest in Deniz Bank

Posted by carl at August 22nd, 2007

Dexia has closed on October 17, 2006 the share purchase agreement with Zorlu Holding concerning the acquisition of a 75 % stake in DenizBank Financial Services Group. Since its announcement on May 31, 2006, all regulatory approvals have been obtained.The 237,063,940,440 shares representing a 75 % stake in Denizbank A.S. were transferred from Zorlu Holding A.S. to Dexia Participation Belgique SA (a 100% subsidiary of Dexia SA) for USD 2,428,573,380. This transaction values 100% of the shares of DenizBank at USD 3.238 billion.

In compliance with Turkish law, Dexia Participation Belgique SA will launch a mandatory tender offer for the remaining ordinary shares held by the minority shareholders (approximately 25%), and listed on the Istanbul Stock Exchange. This offer will be launched after obtaining the regulatory approvals required for this mandatory tender offer, at a price per share in TRY equivalent to that offered to Zorlu Holding.

Dirk Bruneel, Member of the Management Board of Dexia, will become Chairman of the Board of Directors of DenizBank. Hakan Ates will remain Chief Executive Officer of DenizBank.

Axel Miller, Dexia’s Chief Executive Officer, declared:
“With DenizBank, Dexia has acquired a superior franchise in Turkey. DenizBank is best placed to capture the vast opportunities which are offered in universal banking in one of the fastest-growing markets in the region. Besides, the bank will capitalize on Dexia’s world leadership to develop, on the medium to long-term, a strong position in public and project finance in a very promising environment.”

Hakan Ates, DenizBank’s Chief Executive Officer said:
“Denizbank became the sixth biggest private bank since its creation nine years ago. Thanks to this takeover, we will not only have Dexia, the world’s leader in public and project finance, to bring its expertise and superior ratings in Turkish banking but also Zorlu Group will have the chance to invest further in Turkey contributing to economic growth. Moreover, with this takeover, Denizbank will become Dexia’s growth engine within the region and will also contribute to its diversification.”

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Investec buys Turkey debt

Posted by carl at August 7th, 2007

Investec Asset Management’s emerging market debt team said on Monday it had been looking for buying opportunities after recent turmoil and had bought Turkish  bonds and Turkish lira.He said the South African-owned firm, which manages $300 million in emerging market debt not including $8.5 billion in South Africa itself, was looking for the most liquid markets.

“If we are wrong we can unwind these decisions,” Gey van Pittius said.

Investec AM reckons contagion from the U.S. credit market crisis — which has pushed emerging market debt spreads over U.S. Treasuries  out about 70 basis points since mid-June — will be contained.

It suggested in its most recent note that emerging debt markets may be close to pricing in enough negative news.

Given that global recession is unlikely and that psychological contagion is often short-lived, it reckons there are buying opportunities around.

Like others, Investec AM noted that circumstances have changed within emerging markets. Problems in one area do not necessarily spill over into others and country and currency selection is more important.

The firm, for example, believes recent elections in Turkey will allow Ankara to continue with strong economic reforms, hence its recent bond and lira move.

“The government has done a really good job,” Gey van Pittius said.

Turkish bond spreads as measured by JP Morgan’s emerging market index were 226 basis points over Treasuries on Monday versus 205 bps on May 1.

In its latest report covering the end of July/beginning of August, meanwhile, the firm said its biggest debt longs were Turkey, Chile, Israel and Brazil, while it was short in Poland, the Czech Republic and Slovakia.

In currencies, its biggest longs were in the Brazilian real, Argentinean peso, Polish zloty, Chilean peso, Nigerian naira and Turkish lira, while it held key shorts in the Taiwanese dollar, Korean won, Czech koruna and South African rand.

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