UniCredit, Koc confirm talks over Turkey’s Yapi Kredi ownership
Italy’s UniCredit and Turkey’s Koc Holding said Monday they were in talks to change the ownership structure of Yapi Kredi Bank, which the two companies control via a joint venture, adding they had yet to reach a deal.
Three sources had told Reuters on Friday that UniCredit had struck a deal to reduce its exposure to Turkey’s third biggest bank, in a move seen as a step toward UniCredit’s exit from the country, which has been mired in recession. As part of the plan, UniCredit would sell its 50% stake in its joint venture Koc Financial Services (KFS), which controls Yapi Kredi, to its partner Koc Holding, two sources had said.
Koc Holding said on Monday talks were ongoing with UniCredit on reorganising the shareholder structures of the joint venture and Yapi Kredi “in such a manner to ensure that the parties shall not reach direct or indirect majority” of Yapi Kredi.
The sources had told Reuters a deal would give Koc Holding a majority stake in Yapi Kredi, which has a market value of $3.7 billion.
Koc Holding said in its Istanbul stock exchange filing that there had been no development that required public disclosure and its statement was prompted by questions from its investors.
UniCredit confirmed in a statement that discussions were underway “about a potential evolution of the current joint venture in Turkey”, but said a deal had not been reached. Italy’s biggest bank has been restructuring under Chief Executive Jean Pierre Mustier, shedding assets to strengthen its balance sheet. (RTRS)