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Turkish treasury to take control of majority stake in Vakifbank

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Turkish treasury to take control of majority stake in Vakifbank

The Turkish treasury will take control of a 58.45% stake in Türkiye Vakiflar Bankasi TAO from the government's General Directorate of Foundations, Reuters reported Dec. 24, citing the Official Gazette.

An emergency decree published in the gazette said the price per share of the deal will be finalized by the cabinet, with the amount to be paid via the issuance of five sukuks.

The bank said it will remain state-owned and will not change its business plan as a result of the transaction, Reuters wrote separately Dec. 25.

In light of the bank's current trading price, the stake being sold is valued at some $2.4 billion, according to the reports. The stake comprises group A shares representing 43% of the bank and group B shares representing 15.51%.

Group D shareholders, who have a combined 25.22% stake in the bank, will not be affected by the transaction, while remaining group B and C shareholders will be allowed the option to sell their shares to the treasury, the newswire noted.

Ozturk Oran, chairman of Vakifbank's Islamic unit, Vakif Katilim Bankasi AS, told Reuters in May that the government was eyeing the Vakifbank stake transfer as a means of generating capital to support the unit as part of a drive to boost Islamic finance.