Burgan, the commercial banking arm of Kuwait Projects Co (KIPCO), will pay $355 million for the Turkish lender Eurobank tekfen, the company said. The lender, which has a market value of around $2.4 billion, will also absorb $280 million of loans issued by EFG to the Turkish unit as part of the deal, Burgan said in a bourse filing.
The Kuwaiti lender will use internal funds for the deal and is awaiting final approval from central bank in Kuwait and regulators in Turkey, it said.
The stake in Eurobank Tekfen, a partnership between EFG Eurobank and Turkey's Tekfen Holding, was put up for sale last July by Greece's second-largest bank. While Greek banks seek to shore themselves up in the face of protracted recession, Gulf investors have been looking at Turkey as a natural target in the face of unrest in the Middle East and debt crises in Europe and North America.