On October 8, 2023, Lesha Bank, previously Qatar First Bank, finalized the acquisition of Kazakhstan’s Bereke Bank, taking full ownership of 100% of its shares. This transaction is aimed at enhancing competition in the banking sector and is expected to result in nearly $20 billion in new Qatari investments in Kazakhstan. Lesha Bank’s CEO highlighted the strategic importance of the deal for fostering cross-border opportunities between the two countries.
On October 8, 2023, Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank announced the successful completion of the acquisition of Bereke Bank, marking the transfer of full ownership through the sale of 100% of its shares. Bereke Bank, recognized as one of Kazakhstan’s largest banks, will continue to honor its commitments to clients and maintain the existing terms for current products, operating as a commercial universal bank going forward. According to a statement released by Baiterek, the bank is currently showcasing stable growth and fulfilling the requirements for capital adequacy and liquidity. The introduction of a new shareholder is anticipated to enhance competition among second-tier banks, facilitate the introduction of advanced technologies, and bolster lending to Kazakhstan’s real sector. Baiterek’s officials emphasized the initiative’s role in stabilizing the bank’s performance while seeking to attract a strategic investor. This transaction is regarded as a pivotal development for Kazakhstan’s financial sector. Lesha Bank, previously known as Qatar First Bank (QFB), is a Shari’a-compliant investment bank based in Qatar. It is recognized as a publicly listed entity on the Qatar Stock Exchange and operates under the license of the Qatar Financial Center Regulatory Authority. Mohammed Ismail Al Emadi, CEO of Lesha Bank, remarked, “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 acquisition agreement was finalized at a purchase price of 65 billion tenge, roughly equivalent to $134.9 million based on the exchange rate at the time of the transaction’s closure. Lesha Bank is engaged in investment banking and asset management and offers its services in various regions, including Qatar, the United States, Europe, and the Middle East. Looking ahead, there are indications that Qatari companies are poised to invest nearly $20 billion in new projects in Kazakhstan.
The recent acquisition of Bereke Bank by Lesha Bank represents a significant strategic move within Kazakhstan’s financial landscape. Bereke Bank, being one of the foremost banking institutions in the country, is expected to maintain its operational integrity and customer commitments post-acquisition. The transition aims not only to enhance competitive dynamics within the banking sector but also to foster technological advancements and credit expansion in Kazakhstan’s economy. Lesha Bank’s expansion into Kazakhstan signals growing bilateral cooperation and investment opportunities between Qatar and Kazakhstan, further solidifying financial ties in an evolving global market.
In conclusion, the acquisition of Bereke Bank by Lesha Bank signifies a crucial development in Kazakhstan’s banking sector, aimed at enhancing competition and operational stability. With a commitment to maintain existing client terms and promote market growth, the new ownership opens avenues for technological innovation and investment opportunities. Additionally, this transaction symbolizes a strengthening of economic relations between Kazakhstan and Qatar, with prospects of further Qatari investment paving the way for collaborative development projects worth nearly $20 billion.
Original Source: astanatimes.com
