Commercialbank acquires majority stake in ABank

NEWS RELEASE

The Commercial Bank of Qatar

Commercialbank acquires majority stake in Alternatifbank in Turkey

Monday 18 March 2013, Doha, Qatar: Commercial Bank of Qatar ("Commercialbank" or "the Bank") is pleased to announce that it has agreed to acquire a 70.84% shareholding in Alternatifbank A.S. ("ABank") from Anadolu Endustri Holding A.S. ("Anadolu") for two times the book value at 30 June 2013; the book value of ABank at 31 December 2012 was TL 585 million (US$ 328 million).  The acquisition remains subject to relevant regulatory approval and is expected to be completed in the second half of 2013. As part of the transaction, Commercialbank will also launch a public tender offer to acquire the 4.16% of ABank's shares held in the public domain.

His Excellency, Abdullah Bin Khalifa Al Attiyah, Chairman of Commercialbank said, "We are delighted to have agreed the terms of the acquisition for a majority stake in ABank. Qatar and Turkey continue to strengthen their relationship which will benefit the new partnership between Commercialbank and ABank enabling both banks to continue to grow and thrive; we look forward to working together with the Anadolu Group and ABank." 

Mr. Hussain Al Fardan, Commercialbank's Managing Director, added "ABank operates in a dynamic economy with good long-term growth prospects, in a country that is strategically and culturally aligned, we believe this represents the logical next step in the execution of our international expansion strategy."

Commercialbank's international expansion strategy has focused, to date, on pan-GCC opportunities. The Bank successfully acquired minority stakes in National Bank of Oman (34.9%) in 2005 and United Arab Bank (40%) in the UAE in 2008 and has forged successful alliances with these banks, developing their financial and operational efficiency and growing them in step with the economies they serve. Over the course of the last few years opportunities for further expansion in the GCC have been reviewed and assessed, and Commercialbank has also looked at opportunities to broaden its presence beyond the GCC in adjacent markets; this acquisition is in line with our strategy and represents the first acquisition of a majority stake in another bank.

Andrew Stevens, Commercialbank's Group Chief Executive Officer, said "ABank is a model of efficiency and good management and we look forward to working alongside our new partners, Anadolu Group, to develop the capabilities of ABank. We believe that ABank has the potential to be a strong contributor to the future profitability and growth of the Commercialbank Group."

Tuncay Ozilhan, Chairman of Anadolu and Alternatifbank commented; "We are happy to have agreed this partnership with The Commercial Bank of Qatar and we are looking forward to working together to advance the strategy of ABank as a leading and healthy bank in the growing Turkish financial sector."

The transaction is in line with Anadolu's strategy to focus its resources on its core businesses of food and beverages, power and automotives. Anadolu will retain a 25% stake in ABank and board representation, contributing to the management and development of ABank.

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For more information please contact:

Mona B Abdallah Hugh Barker

Head of Corporate Communications Managing Director

Commercialbank F T I Consulting

Tel: +974 4449 0169 Tel: +974 6644 1426

Email:[email protected] Email: [email protected]

Notes to Editors

About Commercialbank

Commercialbank has total assets of QAR 80.0 billion as at 31 December 2012. As a full service commercial bank, the Bank offers a full range of corporate, retail, and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank's countrywide network includes 28 full service branches and 164 ATMs.

Profitable every year since incorporation in 1975, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth.

A successful diversification strategy has expanded Commercialbank's GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 2.5 billion as at 31 December 2012, has 66 branches in Oman and 1 branch each in Egypt and in Abu Dhabi. UAB is headquartered in Sharjah, with total assets of AED 15.0 billion as at 31 December 2012 and operates 15 branches across the emirates in the UAE.

Commercialbank enjoys strong credit ratings of (A) from Fitch, (A1) from Moody's and (A-) from Standard & Poor's. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Additionally, Commercialbank's Swiss Franc bond issuance in December 2010, listed on the SIX Swiss Exchange, was the first public bond issuance by a Qatari bank in Switzerland.

The Bank is dedicated to supporting Qatar's community and social infrastructure through various Corporate Social Responsibility programmes and sponsorship of events such as the Commercialbank Qatar Masters Golf Tournament.

www.cbq.com.qa

About Anadolu Group

Anadolu Group is one of Turkey's leading industrial conglomerates operating via its holding company Anadolu Endüstri Holding in beer, soft drinks, automotive, retail, finance and energy sectors in 16 countries with over 80 companies. Anadolu Group was founded in the early 1950's by the Yazıcı and Özilhan families, which are jointly the major shareholders of all Group operations through their respective holding companies, Yazıcılar Holding A.Ş. and Özilhan Sınai Yatırım A.Ş. The Group has strong expertise in doing business in partnership with globally reputable companies and brands, such as Coca-Cola, SABMiller, Isuzu, Itochu, Kia, Faber-Castell, and McDonald's. The combined revenues of the Group as of the end of September 2012 equal approximately TL 9.0 billion. The total number of employees in the Group is around 23,000.

http://www.anadolugroup.com/ 

About ABank

ABank is a mid-size Turkish bank (ranked #15 as of the end of September 2012) that predominately serves medium-sized companies through a country-wide network of 63 branches (as of the end of December 2012). ABank provides commercial/corporate banking services and products, with a special focus on the growing segment of Small and Medium-Sized Enterprises. The Bank's main product ranges cover trade finance instruments, working capital finance, cash management, and portfolio management. The Bank has also recently made a strategic decision to focus on Retail Banking, targeting "mass affluent segment" in terms of customer profile with tailor made products. ABank's subsidiary AYatırım, and ALease, an Anadolu Group company, provide financial leasing, brokerage services, and investment banking. The marketing synergy between ABank and these two financial institutions have created a remarkable competitive advantage; AYatırım's strong customer portfolio and ALease's ability to offer long-term contract-based leases give ABank's customers a solid source of financial support.

http://www.abank.com.tr/