Citigroup sells 10 pct stake in Akbank
ISTANBUL - Anatolia News AgencyCitigroup sold 10.1 percent of its stake in Turkey’s Akbank on May 24 in order to comply with Basel III banking regulations, which required Citigroup to lower its stake in Akbank to less than 20 percent, according to an announcement made by Akbank Executive Board Director Suzan Sabancı Dinçer May 25. Citigroup’s shares in Akbank have now dropped to 9.9 percent.
The accelerated book building took place after the market was closed and demand for Akbank shares were 1.6. times oversubscribed and amounted to more than $2 billion.
According to the announcement, shares of Akbank open to the public will increase from 31 percent to 42 percent after the transaction is complete. The shares’ weight and liquidity are also expected to increase.
According to the terms of the sale agreement, Citigroup will not be able to sell its remaining stake in Akbank to a third party for another three years.
“This is the second largest transaction in our region since 2008, not including privatizations,” said Dinçer in the announcement. Dinçer also said it was Turkey’s largest accelerated book building transaction