Abu Dhabi sovereign wealth fund ADQ announced Tuesday a definitive agreement to acquire 96% of the share capital of Odeabank, the subsidiary of Lebanon's Bank Audi in Türkiye.
"Pursuant to the agreement, Bank Audi and other investors, which include International Finance Corporation, IFC FIG Investment Company Sarl, and the European Bank for Reconstruction and Development (EBRD), have agreed to sell their respective interests in the share capital of Odeabank to ADQ," the fund said in a statement.
The deal marks the latest example of the oil-rich emirate's expansion into Türkiye, with recent reports suggesting the ADQ was also nearing an agreement to acquire a stake in a key Turkish port.
Odeabank is a midsize lender in Türkiye with assets of TL 87.3 billion ($2.55 billion), according to Bloomberg News. The bank is Türkiye’s 13th largest private conventional bank by total gross loans and customer deposits, operating with 41 branches in 15 cities across the country and employing approximately 1,300 people as of the end of June 2024, ADQ said in a press statement.
Bank Audi, which established the firm in 2012, is its largest shareholder with a 76.4% stake.
"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. As part of ADQ, Odeabank will have access to fresh capital, which will allow the company to unlock synergies with our wider portfolio, underpinned by attractive market dynamics in Türkiye," Mansour AlMulla, deputy group chief executive officer at ADQ, said.
ADQ has been in discussions to buy the lender over the past few months, Bloomberg News reported in August. Part of Sheikh Tahnoon bin Zayed Al Nahyan’s sprawling empire, ADQ is among Gulf investors evaluating Turkish assets after President Recep Tayyip Erdoğan visited the region last year to shore up investments and bolster cooperation.
During that trip, the UAE had pledged more than $50 billion to support Türkiye after years of animosity between the two countries over political differences.
Other entities based in the Gulf state, including First Abu Dhabi Bank PJSC, have also evaluated potential acquisition targets in Türkiye, Bloomberg News has reported.
In 2022, ADQ launched a $300 million fund together with Türkiye Wealth Fund (TWF), which invests in companies developing emerging technologies or improving existing technologies in key sectors.
In the same year, ADQ acquired the leading Turkish pharmaceuticals company Birgi Mefar Group, which has since become part of ADQ’s wholly owned global life sciences holding company Arcera.
In 2023, ADQ signed two memoranda of understanding with the country to deepen bilateral relations and contribute to its economic development.
The transaction is subject to customary regulatory approvals, including the approvals of the Banking Regulation and Supervision Authority (BDDK) and the Competition Authority in Türkiye.