Bank Hapoalim (TASE: POLI; LSE:80OA) will inject a further $65 million into BankPozitif Credi Ve Kalkinma Bankasi AS, increasing its stake in the Turkish bank to 65%. BankPozitif's shareholders' equity will increase to $365 million following the capital injection.
The stake of Halit Cıngıllıoglu in BankPozitif will fall to 35%. Bank Hapoalim increased its stake in the bank at the expense of RP Explorer Master Fund, owned by a group of former Merill Lynch executives, which was due to acquire 7.45% of the bank, but which withdrew from the deal. The bank confirmed the report.
Bank Hapoalim's acquisition of 57.55% of BankPozitif in November 2006 has been shown to be one of Hapoalim's more successful deals. BankPozitif's net profit rose to $23 million in 2007 from $9 million in 2006, and it contributed NIS 102 million to Bank Hapoalim's net operating profit in 2007, an 18% return on equity. Income from BankPozitif offset Bank Hapoalim's lost income from Bank Otsar Hahayal, which it was forced to sell to First International Bank of Israel (TASE: FTIN1;FTIN5).
Bank Hapoalim is very pleased with BankPozitif, and wants to increase its stake, but its partner, the Cingillioglu Group, does not want to sell. BankPozitif is shortly due to obtain from the Turkey's Banking Regulatory and Supervision Agency a license to accept deposits, and it will be able to foster its retail business. BankPozitif, whose core business is business banking, has plans to expand into retail banking, credit cards, and asset management for its customers.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2008
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