Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank have completed the acquisition of Bereke Bank, one of Kazakhstan’s largest banks, with a transaction valued at approximately $134.9 million. The deal aims to enhance market competition and advance technological integration while maintaining current client services. The strategic partnership indicates potential for future Qatari investments in Kazakhstan, estimated at $20 billion.
On October 8, 2023, Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank announced the successful completion of a transaction that transferred full ownership of Bereke Bank, involving the acquisition of 100% of its shares. Bereke Bank, recognized as one of the largest financial institutions in Kazakhstan, will maintain its commitment to clients, adhering to existing product terms and continuing its operations as a universal commercial bank. The bank currently exhibits stable growth while complying with required capital adequacy and liquidity standards. Following the change in ownership, there are plans to enhance its market position further. In an official statement, Baiterek’s press service elaborated that the introduction of a new investor aims to foster competition among secondary-tier banks, incorporate innovative technologies, and expand lending within the real sector of the economy. They noted, “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. It is publicly traded on the Qatar Stock Exchange and operates under the regulations of the Qatar Financial Center Regulatory Authority. Mohammed Ismail Al Emadi, the CEO of Lesha Bank, emphasized the strategic significance of this acquisition, stating, “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 transaction was finalized at a purchase price of 65 billion tenge, approximately $134.9 million, based on the prevailing exchange rate at the time of completion. Lesha Bank is engaged in investment banking and asset management, catering to markets across Qatar, the United States, Europe, and the Middle East. Additionally, it is anticipated that Qatari firms will invest around $20 billion in new ventures in Kazakhstan in the near future.
This acquisition highlights the ongoing economic collaborations between Qatar and Kazakhstan, particularly in the banking and investment sectors. Bereke Bank’s status as one of Kazakhstan’s largest banks denotes its significance in the nation’s financial landscape. The strategic acquisition by Lesha Bank underscores Qatar’s interest in diversifying its investment portfolio while enhancing financial competition and innovation within Kazakhstan. Baiterek National Holding oversees large-scale investments and economic development in Kazakhstan, making the completion of this deal noteworthy for the country’s financial sector.
In conclusion, the acquisition of Bereke Bank by Lesha Bank signifies a noteworthy development in Kazakhstan’s banking industry, with implications for increased competition, technological advancement, and potential economic growth. This strategic partnership is expected to bolster financial ties between Qatar and Kazakhstan, paving the way for significant foreign investment and reinforcing collaborative initiatives within the financial market.
Original Source: astanatimes.com
