Doğuş Holding and BBVA reach agreement over partnership in Garanti Bank
1In accordance with the shares transfer deal signed on the 1st of November 2010, BBVA will buy 26,418,840,000 shares representing 6.2902% of Garanti's issued capital for a total of USD 2,062,000,000. Additionally, BBVA has reached an agreement with General Electric to buy 78,120,000,000 Garanti Bank shares representing 18.60% of the issued capital. The share transfers will take place simultaneously on the completion of approval by the regulating bodies, resulting with Doğuş Group and BBVA each holding 24.8902% of the Bank's shares. Doğuş Group Chairman Ferit F.Şahenk will chair the board of the bank while Ergun Özen will continue as the general manager. The first 5 years of the partnership will continue on the principle of equal footing for the two parties. 4 members of the Board of Garanti will be proposed by Doğuş Holding and 4 by BBVA. The general manager of Garanti will be proposed by Doğuş Holding and the board of directors will have 9 members.
Doğuş Holding A.Ş and Banco Bilbao Vizcaya Argentaria S.A (BBVA), one of Europe's leading banking groups have reached an agreement for the joint acquisition of a shareholding in Türkiye Garanti Bankası. In accordance with the shares transfer deal signed on the 1st of November 2010, BBVA will buy 26,418,840,000 shares representing 6.2902% of Garanti's issued capital for a total of USD 2,062,000,000.
Additionally, BBVA has reached an agreement with General Electric to buy 78,120,000,000 Garanti Bank shares representing 18.60% of the issued capital. The shares transfers will take place simultaneously on the completion of approval by the regulating bodies, resulting with Doğuş Group and BBVA each holding 24.8902% of the Banks shares.
Doğuş Group Chairman Ferit F.Şahenk will chair the board of the bank while Ergun Özen will continue as the general manager.
The first 5 years of the partnership will continue on the principle of equal footing for the two parties. 4 members of the Board of Garanti will be proposed by Doğuş Holding and 4 by BBVA. The general manager of Garanti will be proposed by Doğuş Holding and the board of directors will have 9 members.
Garanti Bank Chairman Ferit F.Şahenk proclaimed: "10 years ago, while our Country was still struggling through an acute economic crisis, we decided to turn Garanti first into a major regional player and soon thereafter into a leading global bank. Garanti today is not only a leading Turkish bank but one of the biggest private banks in the region where it continues its activities."
Şahenk also stated that partnerships and business models now operated globally across borders just as investment and trade has become fully global: "Our country is not only dominant in the region culturally and socially but we also have the ability to conduct business internationally and possess a huge pool of human resources. Our aim now is to take part in the highest echelon of the global financial league. In line with this aim we will continue our global march in partnership with BBVA who have been applying a successful banking model in many countries. When considering our Bank's competence in customer relations and our lead in utilizing cutting edge technology, it is clear to see that the two banks' strategies for joint future growth fully complement each other."
Şahenk added, "Our coalition with BBVA will also provide an important conduit for capital flow into our country while the global financial system still recovers from the economic crisis. I trust that this Investment by BBVA testifies to their confidence in Turkey's economic and political stability, which coupled with Spain's positively proactive support for Turkey in the EU will send a powerful positive signal to other nations to help develop their perceptions of Turkey."
About Banco Bilbao Vizcaya Argentaria S.A (BBVA)
- BBVA, Spain's second largest bank has many shareholding partners and no single dominating shareholder.
- Active in South America, Mexico, the USA, Portugal and China.
- Total assets of about €557 billion
- Serves a total of 47 million customers through 7,362 branches and with over 105,000 employees
- BBVA's market value as of 30 September 2010 is put at €37.1 billion.