GO
Loading...

ING Buys Turkey's Oyak Bank for $2.67 Billion

ING Group said it agreed to acquire Turkey's Oyak Bank for $2.67 billion and will finance the acquisition with existing internal resources.

ING expects the transaction to result in a decrease of the group's Tier 1 ratio by approximately 50 basis points. Oyak Bank employs 5,581 workers, 1.2 milloin retail customers, 10,000 small and medium-sized business customers and a 3% share of the Turkish market, according to ING.

In 2006, it made a pretax profit of 165 million Turkish lira ($127 million) and at the end of the year, it had total assets of 11.8 billion lira ($9.05 billion) and a book value of 988 million lira.

ING said its offer will result in a price/book multiple of 3.326 of shareholder's equity at March 31 2007, and a price/earnings multiple of 26.6 times the 2006 normalised earnings. ING expects to close the transaction in the second half of 2007, subject to regulatory approval. It thinks the acquisition will be accretive to ING's earnings per share from 2008.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Private Jet

    Like migrating birds, private jet setters follow a basic instinct when it comes to their flight paths: They follow better weather.

  • Fake Apple Watches... can you tell the difference?

    CNBC's Eunice Yoon reports Apple Watch is officially available today but already fake watches are hitting the streets.

  • Alphorn players perform in Nendaz, Switzerland.

    Switzerland is the happiest place on Earth, thanks to its high performing GDP and healthy life expectancy rates of its citizens.

U.S. Video