RIYADH: Abu Dhabi’s investment and holding company, ADQ, has signed an agreement with Bank Audi to purchase 96 percent of the share capital in Odeabank, the Turkish subsidiary of the Lebanese institution.
According to a press release, the transaction involved the sale of Bank Audi’s stake in Odeabank, along with shares held by other investors, including the International Finance Corp., IFC FIG Investment Co. Sarl, and the European Bank for Reconstruction and Development.
Odeabank, established in 2012, is Turkiye’s 13th-largest private financial institute by loans and deposits, with 41 branches in 15 cities. It focuses on commercial lending and is expanding its retail and wealth management services. As of June, it had about 1,300 employees, the press statement said.
Mansour Al-Mulla, deputy group CEO at ADQ, highlighted the significance of the acquisition in advancing the institute’s broader strategy in the financial sector.
“The acquisition of Odeabank reinforces our commitment to investing in assets that lay the foundation for the sustainable development of our portfolio companies as well as the wider economy,” Al-Mulla said.
He emphasized the benefits Odeabank will experience as part of ADQ’s portfolio, including access to new capital and synergies within the group.
“We are confident that this will accelerate the execution of Odeabank’s growth plans while driving technological innovation in the financial services sector,” the CEO said.
According to the statement, ADQ’s acquisition is aligned with its strategic commitment to enhancing innovation within the financial services sector.
The deal followed a series of additional ADQ investments in Turkiye.
In 2022, the investment entity launched a $300 million fund in partnership with Turkiye Wealth Fund to invest in companies focused on developing or improving technologies in key sectors. That same year, ADQ acquired the Turkish pharmaceutical company Birgi Mefar Group, which was integrated into ADQ’s global life sciences holding company, Arcera.
The sale of Odeabank is also aligned with Bank Audi’s focus on its core markets, particularly in Lebanon and Europe.
Khalil El-Debs, CEO of Bank Audi, said: “This transaction aligns well with Bank Audi Group’s present strategic focus on its home market as well as its presence in Europe. We are pleased to have attracted the interest of a global institution like ADQ in acquiring Odea Bank A.S., our Turkish subsidiary.”
Under ADQ’s ownership, Odeabank is expected to further enhance its position in the Turkish market, leveraging the institute’s expansive portfolio, which spans “key sectors of Abu Dhabi’s rapidly diversifying economy, including energy and utilities, food and agriculture, health care and life sciences, and transport and logistics, among others,” the press statement said.
The completion of the transaction is subject to customary regulatory approvals, including clearance from the Banking Regulation and Supervision Authority and the Competition Authority in Turkiye.
J.P. Morgan served as the sole financial adviser to Bank Audi on the transaction and provided a fairness opinion, as explained in the press release.
