Halyk bank (Kazakhstan) acquired Kyrgyz Kairat bank

/REUTERS, Bishkek, Olga Dzyubenko, May 24, 04/ - Kazakh Halyk Savings Bank (HSBK) won a tender on 100% sale of Kyrgyz Kairat bank with a deal price of $1.25 million, representative from Committee on state property told on Monday. A total of four banks, all Kazakhstan-based, participated in bids where Alliance Bank and Bank Caspian offered $1.13 million and $850,00, respectively, while CenterCredit Bank was rejected due to non-responsiveness of the bid to requirements. "I think it would be right to say that Halyk bank won a tender", deputy head of State property committee told press conference. He does not see any problems that may arise at further negotiations. State property committee also expects that winner contributes approximately $7 million to the chartered capital of the bank within next 3 years as promised. If negotiations fail as it frequently happens in Kyrgyzstan, the committee will talk to a second winner Alliance bank. According to the committee, authorized capital of the bank that ended last year with profits, totaled 170 million soms (appr. $3.9 million) at Jan 1, 2004. Other figures are left undisclosed. KAZAKH BANKS EXPANSION Kazakh financial institutions have been eyeing on Kyrgyz banking market for a reasonable period of time. Largest Kazkommertsbank acquired controlling package of shares over Kyrgyzavtobank in late 2002. Temirbank acquired 46 per cent stake in Kyrgyz Ineximbank last year partnered with the European Bank for Reconstruction and Development that bought 25 per cent in same bank for $1.4 m. Second largest private bank in Kazakhstan - TuranAlem - considers purchasing a stake as well. According to Kyrgyz Energobank it is currently in talks with Kazakh ATFBank over sale of 34 per cent stake for $0.85 million. In the EBRD's opinion, Kyrgyz banking sector is less developed than that of neighboring Kazakhstan, yet provides good opportunities for investments. There are 21 commercial banks operating in Kyrgyzstan. ($1=43.85 som) [2004-05-24]