Lesha Bank Completes Acquisition of Bereke Bank, Strengthening Financial Ties Between Qatar and Kazakhstan

Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank have completed the acquisition of Bereke Bank, transferring full ownership through a transaction valued at approximately $134.9 million. The bank will continue to operate under its current terms for customers, with an emphasis on enhancing market position and expanding lending opportunities. The move is poised to improve competition in Kazakhstan’s banking sector and foster collaboration between Qatar and Kazakhstan.

ASTANA – On October 8, 2023, Kazakhstan’s Baiterek National Holding and Qatar’s Lesha Bank officially announced the completion of the acquisition of Bereke Bank, transferring full ownership through the sale of 100% of its shares. Bereke Bank, recognized as one of Kazakhstan’s prominent financial institutions, is set to uphold all existing obligations to its customers. The bank will maintain current product terms for its clientele and continue to operate as a commercial universal bank. Currently, Bereke Bank is demonstrating stable growth while adhering to established capital adequacy and liquidity standards. Following the transition of ownership, plans are in place to strengthen the bank’s market position further, as detailed in a statement by Baiterek’s press office. The introduction of Lesha Bank as a new stakeholder is anticipated to enhance competition among Kazakhstan’s second-tier banks, facilitate the introduction of innovative technologies, and expand lending opportunities in the country’s real sector. Baiterek Holding emphasized the goal of stabilizing the bank’s operations while attracting a strategic investor, marking this acquisition as a pivotal moment for Kazakhstan’s financial sector. Lesha Bank, previously known as Qatar First Bank (QFB), is an investment bank that complies with Shari’a law, headquartered in Qatar, and is publicly listed on the Qatar Stock Exchange. It operates under the regulatory supervision of the Qatar Financial Center Regulatory Authority. Lesha Bank’s Chief Executive Officer, Mohammed Ismail Al Emadi, stated, “This acquisition marks a strategic step in strengthening our investment portfolio and reinforces the collaborative ties between our countries. It aligns with our long-term vision of fostering cross-border opportunities and expanding in international markets.” The acquisition price for Bereke Bank was settled at 65 billion tenge, which is approximately $134.9 million based on the prevailing exchange rate at the time the transaction was finalized. Lesha Bank is engaged in investment banking and asset management, providing services across various markets, including Qatar, the United States, Europe, and the Middle East. Furthermore, it is anticipated that Qatari companies will invest nearly $20 billion in new initiatives within Kazakhstan in the near future.

This article discusses the significant acquisition of Bereke Bank by Qatar’s Lesha Bank, highlighting the transaction’s implications for Kazakhstan’s financial landscape. Baiterek National Holding emphasizes the stability and growth of Bereke Bank, underscoring the intention of the new ownership to enhance competitive dynamics within the banking sector. The acquisition embodies a strategic investment move for Lesha Bank and reflects the increasing collaborative financial ventures between Qatar and Kazakhstan.

The acquisition of Bereke Bank by Lesha Bank represents a significant development in Kazakhstan’s banking industry, aimed at enhancing competition and fostering sustainable growth within the sector. The transition of ownership is anticipated to attract further investments and technological advancements, thereby strengthening the financial landscape of Kazakhstan. Both countries stand to benefit from this strategic partnership, reflecting a broader commitment to fostering cross-border economic opportunities.

Original Source: astanatimes.com