Koç Financial Services A.Ş signed on May 8 agreement with ÇUKUROVA for acquisition of 57.42% of Yapi Kredi

On 31 January 2005, a preliminary share transfer agreement was executed between Koç Financial Services A.Ş . (KFS), 50% owned by UniCredit and 50% by Koç Group, and Çukurova Holding A.Ş. Yesterday, 8 May 2005 the parties have entered into a definitive share purchase agreement for the purchase of 57.42% shares of Yapı ve Kredi Bankası A.Ş. (YKB) held by the Çukurova Group and Savings Deposit Insurance Fund (SDIF).

The purchase price for 100% of YKB shares is calculated using a price of Euro 2,021 million (implied purchase price for the 57.42% shareholding Euro 1,160 million), subject to a price adjustment based on the market value of YKB’s participations in Turkcell at closing.

Pursuant to the share purchase agreement, it is anticipated that the share transfer will take place as soon as possible subject to obtaining various contractual and procedural conditions agreed between the parties including, without limitation, authorisations from all necessary governmental authorities such as the Banking Regulation and Supervision Agency (BRSA), Competition Board, Capital Markets Board (CMB) and other foreign competent authorities.

Following closing of the share purchase agreement and after obtaining the relevant approvals from the Capital Markets Board, KFS will make a tender offer to the public shareholders of YKB for all the remaining shares.

Commenting on the transaction, UniCredit said: ”After the successful experience of our partnership with the Koç Group, we are keen to further develop our position in the Turkish market and our regional expansion. Following the acquisition of YKB, Turkey will represent approximately 25% of the total assets of UniCredit’s New Europe Division.“