# First Abu Dhabi Bank Acknowledges Market Speculation with Statement

- Link: https://www.directorstalkinterviews.com/first-abu-dhabi-bank-acknowledges-market-speculation-with-statement/4121158327
- Published: 2024-05-22T12:43:29+01:00
- Author: Anthony Fox

**First Abu Dhabi Bank** (FAB.AD) has announced that it is aware of recent media
speculation. The Bank is focused on executing its growth strategy and continuously
maintaining strong returns to its shareholders.

The bank states that it may engage in strategic discussions on growth potential 
to its operational network that has a strategic fit with its overall banking operation
and that material disclosures will be made to the market in accordance with the 
regulatory requirements.

According to Reuters, First Abu Dhabi Bank (FAB) is in advanced negotiations to 
acquire a 61.2% stake in Istanbul-based lender Yapi Kredi from Turkish conglomerate
Koc Group. The potential deal, valued at approximately $8 billion, would represent
one of Turkey’s largest bank buyouts.

Sources close to the matter, speaking on condition of anonymity due to the confidential
nature of the discussions, revealed that the final details are being ironed out 
following several months of negotiations. The news has had a significant impact 
on the market, with Yapi Kredi shares soaring by 10% and Koc Holding shares increasing
by over 7%, both reaching record highs. This surge helped drive Istanbul’s main 
index to a new peak, though FAB shares experienced a slight dip.

This potential acquisition marks the latest instance of Gulf investment in Turkey.
President Tayyip Erdogan has actively sought to repair relationships with the UAE
and Saudi Arabia, aiming to attract their investments to support Turkey’s struggling
economy and foreign reserves. One of the sources indicated that Koc had initially
sought about $8.5 billion for its shares in Yapi Kredi, while FAB’s offer stood 
at around $7.5 billion.

In a statement to the Istanbul bourse, Koc Holding acknowledged the Reuters report,
confirming that preliminary discussions regarding the sale of Yapi Kredi shares 
were underway. The company also noted its openness to considering various alternatives
within its portfolio. “Although preliminary discussions of a similar nature continue
regarding the issue reflected in the media, there are no developments that require
public disclosure,” the statement read.

The potential acquisition by First Abu Dhabi Bank underscores the growing economic
ties between Turkey and Gulf nations, as both regions look to bolster their economic
positions through strategic investments and partnerships.

First Abu Dhabi Bank offers personal and private banking services, ranging from 
credit cards to Islamic banking, investment, loans, and mortgages in the UAE.

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