Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank have finalized the acquisition of Bereke Bank, an important move in Kazakhstan’s financial sector. The deal, valued at approximately $134.9 million, aims to enhance market competition and introduce advanced technology in banking. The acquisition is expected to strengthen economic ties and facilitate further Qatari investments in Kazakhstan.
Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank have officially confirmed the completion of the acquisition of Bereke Bank on October 8, 2023, resulting in the transfer of full ownership with the sale of 100% of its shares. Baiterek’s press service announced that Bereke Bank will continue its operations as one of the largest banks in Kazakhstan, maintaining current product terms for existing clients and abiding by commercial banking standards. Following the ownership transition, the bank aims to bolster its market standing while demonstrating stable growth that meets capital adequacy and liquidity standards. The Baiterek Holding emphasized that the entry of a new stakeholder aims to enhance competition among second-tier banks, introducing advanced technology and broadening lending to the real economy sector. The initiative aligns with Baiterek’s objectives of stabilizing the bank’s functions and securing a strategic investor in Kazakhstan’s financial landscape. Lesha Bank, previously recognized as Qatar First Bank (QFB), is a Shari’a-compliant investment bank based in Qatar, listed on the Qatar Stock Exchange, and regulated by the Qatar Financial Center Regulatory Authority for banking operations. Mohammed Ismail Al Emadi, the CEO of Lesha Bank, expressed that this acquisition is a pivotal advancement in enhancing their investment portfolio and strengthens the bilateral ties between Qatar and Kazakhstan, supporting a long-term vision of cross-border opportunities and international market expansion. The acquisition was finalized at a reported purchase price of 65 billion tenge, approximately equivalent to $134.9 million. Furthermore, Lesha Bank emphasizes its operations in investment banking and asset management across Qatar, the United States, Europe, and the Middle East, with Kazakhstani investments from Qatari companies anticipated to reach nearly $20 billion in upcoming projects.
This acquisition represents a strategic development in the banking sector of Kazakhstan and Qatar, as foreign investments are crucial for enhancing economic growth and stability. Baiterek Holding’s leadership seeks to foster a more competitive banking environment within Kazakhstan, while the entry of Lesha Bank is expected to facilitate the introduction of innovative banking technologies and services. As the financial landscape continues to evolve, strategic partnerships such as this acquisition are essential for both nations to advance in the global market, diversify economic relations, and attract further investments. The growing collaboration is not only significant for the financial sector but also indicates a strengthening economic partnership between Kazakhstan and Qatar, with foresights of mutual benefit in various sectors including infrastructure and service industries.
In conclusion, the acquisition of Bereke Bank by Lesha Bank symbolizes a significant milestone for Kazakhstan’s financial sector, encouraging foreign investment and fostering a reinvigorated competitive atmosphere among banks. The insights from Baiterek Holding and Lesha Bank reflect a collective ambition to stabilize and enhance banking operations in Kazakhstan while concurrently promoting robust economic collaborations. The commitment to maintaining service quality for existing clients alongside the anticipated influx of new investments spotlight the bank’s ongoing strategic enhancements necessary for sustainable growth within the region.
Original Source: astanatimes.com
