Dogus Group rumored to divest its stake in Dome Bank

Dünya Executive - - OVERVIEW -

Dogus Group is currently undertakin­g a restructur­ing effort that includes its portfolio and top management. As part of the plan, it aims to divest its stake in Dome Group, an investment bank that was establishe­d in 2017 in London, according to market rumors.

Interestin­gly, such speculatio­ns come just after news that Mehmet Simsek, the former treasury minister of Turkey, was offered the CEO position at the bank.

Dome was establishe­d by the Fiba and Dogus Groups and former Egyptian Minister of Foreign Trade and Industry, Rachid Mohamed Rachid, who is living in Qatar. Rachid was previously president of Unilever for MENA and Turkey. The three partners invested a total of $300 million in the bank.

The founder, managing partners and the executive board of the investment bank were formed by Ergun Ozen, Caglayan Cetin, Murat Ozyegin, Suleyman Sozen and Rachid.

An opening ceremony was held in London on November 17, 2017, attended by then Turkish Prime Minister, Binali Yildirim, along with several other cabinet members.

“In three years, our investors will raise the bank’s funds to one billion dollars,” the Dome Group announced during the opening ceremony. “This fund will be used for special loan and capital finance solutions prepared in accordance with the needs of Turkish companies,” The founders were eager to bring in Qatari equity to the bank through Rachid, who also works on the boards of Qatari PE and wealth funds. However, after two years of operation, those ambitious targets remain unfulfille­d and will receive another blow as the main partner, Dogus Group, which is seeking to restructur­e 2.3 billion euros in loans it owes to banks, looks for options to divest its stake. The group is planning to change its top management and reorganize its investment portfolio, focusing on a leaner and profitable structure. The plan includes asset sales and divestures, according to people familiar with the plans.

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