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Greece-Turkey: bilateral business, trade, tourism and investment relations
<<< Back to INVgr's Special Section on South-East Europe Greek-Turkish relations enter new 'orbit'... "Our trade and tourism ties are growing... What Turkey and Greece have achieved in recent years is indeed impressive! Turkey and Greece should continue to strive for new horizons in their relations, to the benefit of their peoples and democracies... Turkish-Greek partnership will not only benefit the two countries and their peoples, but it will also serve as an element of peace and stability both in our region and Europe at large." -- Abdullah Gul, Deputy Prime Minister and Foreign Minister of Turkey, writing in To Vima of October 21, 2003 "The two great national leaders [Greek and Turkish statesmen Eleftherios Venizelos and Mustafa Kemal Ataturk], on the basis of common sense and wisdom, contributed to Greek-Turkish co-operation and friendship which continued and flourished for some years... We do not want the next generations to live as we have lived... peace and love are deeply consolidated in the sentiments of the two peoples." -- Recep Tayyip Erdogan, Prime Minister of Turkey, speaking at a joint press conference, held by Dr. Costas Karamanlis, the Greek Prime Minister, and his visiting Turkish counterpart, in Athens on May 7, 2004 "We confirmed our coincidence of views with respect to the new 'orbit' into which Greek-Turkish relations have entered and ascertained with satisfaction the progress they are making." -- Dr. Costas Karamanlis, the Greek Prime Minister, speaking to reporters on May 7, 2004 after his meeting with the Turkish Prime Minister, who arrived in Athens for an official visit -- the first by a Turkish premier since 1988 -- heading a large delegation of government officials, entrepreneurs and media. Addressing this Turkish delegation, the Greek Prime Minister said that his country remains steadfastly adhered to the target of the reunification of Cyprus "so that Greek-Cypriots and Turkish-Cypriots together can enjoy the benefits of participation in the European Union."
"Greece is optimistic that Turkey's course towards Europe will also end in a full normalistion of our bilateral relations, but for this course to be completed, Ankara has to revise standing positions in its foreign policy and effect a real revolution in its domestic affairs. We hope that the required will exists. If it does not, then this course will stop in the middle. The European Union has a responsibility towards its citizens not to accept entry by states that fail fully to adapt to the [EU's] system of principles and values." -- Karolos Papoulias, President of the Hellenic Republic, addressing army officers at a reception at the Soufli army officers' club in the northern prefecture of Evros on April 23, 2006. The President celebrated Orthodox Easter Sunday with officers, NCOs and servicemen of the 50th Mechanised Brigade near the border with Turkey "In this long path of five years [as Greece's Foreign Minister (1999-2004)], in the European Union, I think that my country, Greece, has had an important role to play. We are proud of our decision in Helsinki, which helped both to change the relations between the European Union and Turkey, but also helped Cyprus become a member... By the end of the year [2004], we will also be making a very important decision and Greece would very much like to see it as a positive decision, and that's on Turkey..." -- George A. Papandreou, former Foreign Minister of Greece, during his farewell press conference in Brussels on January 26, 2004; in 1997, he was awarded the Greek-Turkish peace and friendship award Abdi Ipekci for his efforts to strengthen relations between Athens and Ankara "Unless something bizarre or peculiar should happen before December [2004], the Greek government will say 'yes' to Turkey because we believe that this will make our part of the world a European neighbourhood, because it is good for the Turkish people and for Turkey's neighbours, who will feel that their problems can be solved more quickly, more easily, in a more European way." -- Yiannis Valinakis, Deputy Foreign Minister of Greece, speaking to N-TV, the Turkish television channel, on May 8, 2004 "Greek companies will continue to seek new opportunities for investment and joint ventures with Turkish companies, seeking both to tap into the far larger and more lucrative Turkish market, and also to penetrate markets further to the east, such as the Caspian Sea Basin and Central Asia. Greece's door to that underdeveloped treasure trove will surely be Turkey. Just the same, Turkish companies will increasingly look to penetrate Balkan markets, and share in the billions of dollars in international aid and loan packages, in conjunction with their Greek counterparts, whose sense of unease over Greek-Turkish security problems restrains them from sharing the potential that Balkan opportunities may offer. It may well come down to the essence of the business deal: win-win regional trade access for Greek and Turkish companies. The private sectors in both countries need each other for effective penetration of geographically integrated regions. Greeks can cross Turkey into Central Asia, and Turkey can cross Greece into the southern Balkans. Each side opens the door for the other, maximises opportunity and profit, and helps spread the benefits that accrue from co-operation in commerce, industry, currency stabilisation, construction, health systems, food processing, banking, insurance, tourism, environmental protection, and so many areas in need of desperate investment to rebuild the lives of all the people of South-East Europe." -- John Sitilides, Executive Director, The Western Policy Centre, addressing the Equity International "South-East Europe Finance Conference" in Washington, D.C. on November 14, 2000.
Introduction In January 2002, INV International Ltd. launched a unique new INVgr section that aims to promote and strengthen the bilateral business, trade, tourism and investment relations between Greece and Turkey. Business between Greece and Turkey has gained impetus due to an improvement in political ties over the last 5-6 years, bringing a fivefold increase in the volume of two-way trade. In excess of 25 bilateral agreements have been signed between the two countries over the past five years. Greece's trade deficit with Turkey jumped 71.7% in 2003 compared with the previous year, totalling USD 477.19 million. Turkey's exports to Greece rose by 52.8% last year to USD 902.64 million, while Greek exports to Turkey rose 36.16% to USD 425.45 million. Bilateral trade exceeded USD 1.3 billion in 2003, up 47.1% from the previous year and sharply up from EUR 200 million in 1999. "We can soon raise this to EUR 5 billion," Recep Tayyip Erdogan, the Turkish Prime Minister, said at a luncheon hosted by the Greek-Turkish Business Forum in Athens on May 7, 2004. It was the first official visit by a Turkish Prime Minister since 1988. Latest Greek-Turkish bilateral trade data Bilateral trade between Greece and Turkey exceeded USD 2.17 billion in the 10-month period January-October 2006, with Greek exports to Turkey marking a larger proportional increase than Turkish imports to Greece reaching USD 865.6 million, marking a substantial 62.1% year-on-year increase over 2005. Greece's trade deficit with Turkey nevertheless has increased reaching 10.7% over the same period, due to a 40.1% increase in Turkish exports to Greece, reaching USD 1.309 billion. (Source: Greek-Turkish Chamber of Commerce (GTCC)). INVgr welcomes your feedback, ideas, articles, company news or suggestions! (Click here to E-mail INVgr).
Golf courses in Turkey
NBG Group reports increased net profit for fiscal 2006
Finansbank's results particularly encouraging
February 22, 2007 -- State-run, ATHEX-listed National Bank of Greece (NBG) announced yesterday that its full-year 2006 group net profit rose by 36% year-on-year, broadly in line with market expectations, on strong growth in retail credit. NBG, the first Greek bank to venture into Turkey last year with the acquisition of Finansbank, said net interest income grew by 19% to EUR 1.892 billion.
"Finansbank's results were particularly encouraging," said Chief Executive Takis Arapoglou in a statement. "Its profitability confirmed our expectations, exceeding EUR 156 million."
The NBG Group, also present in Bulgaria, Serbia, Romania, Albania and Cyprus, said its overall loan portfolio expanded by 20% to EUR 37 billion, Finansbank not included. Source: Greek News Agenda.
Eurobank EFG to acquire 70% of Tekfenbank Eurobank EFG and Tekfen Group form strategic alliance
May 8, 2006 -- EFG Eurobank Ergasias SA (Eurobank EFG) and Tekfen Holding (Tekfen Group) agreed today to join forces in the Turkish financial services market. According to the agreement, Eurobank EFG will acquire 70% of Tekfen Group's holding in Tekfenbank together with its wholly-owned subsidiary, Tekfen Leasing (together the
‘bank’).
Tekfen Group will remain a strategic shareholder in Tekfenbank, holding almost all of the remaining shares in the
Turkish bank. The consideration for the transaction implies a total valuation for Tekfenbank of approximately USD 260 million based on a Net Asset Value of the Bank estimated at closing of USD 80 million. The partners agreed that, as part of the overall transaction, Tekfenbank will acquire full ownership of EFG Istanbul Securities, currently a subsidiary of Eurobank EFG.
The transaction's closing is subject to regulatory approvals and is expected to
take place in the third quarter of 2006. With
570 employees, Tekfenbank is a universal bank that provides a complete range of banking products and services in Turkey. The bank has an efficient and selective network of 30 branches, which covers the most affluent areas of the country. Tekfenbank is focused on small and medium-sized
(SME) business customers. This SME customer base is well-diversified and highly loyal, while the bank’s retail clients comprises usually of higher-than-average earners. The bank’s loan portfolio
totalling EUR 200 million is considered to be of a very good quality, reflecting
the management’s conservative credit policy and risk appetite.
Total assets reached EUR 468 million at the end of 2005.
Tekfenbank's strategy for the medium-term envisages strengthening its SME presence by (1) attracting additional customers through its existing branches, (2) extending its distribution network, (3) increasing per customer exposures, and (4) driving the cross-sell ratio, especially with regards to affluent clients. Tekfenbank also intends to move into new growth business segments, such as mortgages and asset management. Furthermore, the bank, in conjunction with its future subsidiary EFG Istanbul Securities, intends to enhance its activities in capital markets.
Celebrating its 50th anniversary this year, the Tekfen Group is one of Turkey’s most respected privately-owned corporate groups and is active in the areas of contracting, agri-industry, real estate development and financial services.
With total assets amounting to USD 1.6 billion, the Tekfen Group's
2005 turnover reached USD 936 million.
Eurobank EFG is the third-largest Greek banking
group -- National Bank of Greece SA and Alpha Bank SA are the
largest and second-largest, respectively -- with a presence in
Greece, Romania, Bulgaria, Serbia, Poland, Turkey, Luxembourg, the United
Kingdom and Ukraine. Listed on the Athens Exchange (ATHEX), the
bank ranks second in terms of market capitalisation (approximately USD 13
billion).
Eurobank EFG considers that Turkey will experience high growth rates in the medium-term, both as an overall economy and as a banking system. Eurobank EFG believes that Tekfenbank offers a strong operating platform to enter such a market as (1) Tekfenbank operates state-of-the-art infrastructure allowing for quick expansion and introduction of new products, (2) the careful policy of the Tekfen Group and of the current management has created a bank of a very high quality and (3) the Tekfen Group remains as a strategic partner in Tekfenbank following Eurobank EFG's acquisition. Furthermore, this transaction is in line with Eurobank EFG’s practice of entering new countries with selective investments and aiming to add shareholder value through organic growth.
Through this cooperation the two shareholders expect to combine their strengths in the Turkish financial services market -- Eurobank EFG's know-how on traditional and contemporary banking products will be leveraged along with the Tekfen Group’s extensive presence and knowledge in the Turkish market. In addition, the financial strength of the two shareholders and their commitment in Tekfenbank secure the bank’s medium and long term growth.
The HSBC Group, through its investment banking offices in London and Istanbul, acted as sole financial advisers to Tekfen Group on the disposal of 70% of its holding in Tekfenbank. EFG Istanbul Securities, a subsidiary of Eurobank EFG, acted as
adviser for the transaction on behalf of Eurobank EFG. Source: Eurobank EFG.
Alpha Bank SA confirms Turkish ambitions
Cautiously following in
National Bank of Greece SA's footsteps, Alpha Bank SA says it plans
on gaining a foothold in Turkey. Bumper profits mean that money is not an obstacle
By Elaine Green
April 21, 2006 -- Alpha Bank last week revealed it is targeting extensive growth in the Balkans. As predicted in the April 14 edition of the
Athens News, Alpha also confirmed tentative interest in acquisitions in Turkey.
Although the bank's emphasis is on organic growth, acquisitions are also in its sights, Yiannis Costopoulos, chairman of the bank, said at its annual shareholders' meeting on April 18. Any acquisition in Turkey would not be of the size of the National Bank of Greece's acquisition of Turkey's Finansbank and entry into these markets would be "careful and limited", he added.
By contrast, NBG is paying USD 2.7 billion for Finansbank. According to Athens News' information, Alpha has not made any formal approach to the two small Turkish banks - Alternatifbank and Sekerbank - it has considered, whilst medium-sized Tekfenbank is also understood to be of interest.
Rightwing backlash
Alpha's softly, sÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿtting, given pockets of nationalist sentiment in Turkey. The latest was expressed by pension fund OYAK's CEO, Yildirim Turker, who told Turkish reporters that it would not sell out to Greeks at any price, and reportedly praised nationalist sentiments as "noble".
In Romania, Alpha has found no such resistance and is expanding rapidly. Dimitrios Mantzounis, the bank's chief executive, said it plans 40 new units in Romania, 30 in Bulgaria and 11 in Serbia, raising its total network to 267 units in
South-East Europe by the end of 2006.
"Whilst these countries, due to their size and better growth prospects, are the focus of our strategic interest, this does not imply that we are not looking into other markets that offer opportunities for expansion," he added. What he failed to mention was that Alpha is also reportedly bidding for a number of banks in the Balkans as well. Serbia's Vojvodjanska Banka is one such target, with final bids due at the end of this month.
The bank made bumper profits last year. "2005 was particularly important and productive for us. Our activities continued to grow rapidly, at a rate higher than the market average, in both Greece and southeastern Europe, in an environment where competition is continuously becoming more intense," Mantzounis said.
Net profits attributable to shareholders after tax were
EUR 502.2 million compared to EUR 408.2 million last year. Profits before taxes from Greek retail banking recorded a massive 47%, while it was even higher in the Balkan network, reaching 64%.
"High profitability led to a return on equity of 23.1% versus 21.8% in 2004, while total equity grew to
EUR 3.1 billion at the end of 2005. Capital adequacy remains at a high level with the total capital adequacy ratio standing at 13.5% despite the strong growth of our activities in 2005," he added.
Local economic reforms helped
Costopoulos talked up the progress of the Greek economy in 2005, describing it as "a year where economic activity remained at high levels, whilst a number of structural changes took place supporting
long-term prospects".
"Amongst some of the most significant structural changes which took place in 2005 were regulatory adjustments providing more flexibility in the labour market, the extension of working hours for retail stores and the introduction of the legal framework for state and private sector partnerships," he added.
He praised measures aiming at improving efficiency of the public utility companies (DEKOs), the clampdown on tax evasion, the continuation of the privatisation programme and the acceleration of the measures for the liberalisation of the energy market.
The general shareholders' meeting voted to pay EUR 0.84 per share dividend as well as green-lighting an offer of four new shares for each ten existing ones and a new share buyback programme.
Source: Athens News.
Intralot SA sees Eden in the East The gaming company is eyeing acquisitions in China, a lottery bid in Turkey and has landed a EUR 35 million contract in Taiwan April 21, 2006 -- Intralot's shares rose last week amid news that the [ATHEX-]listed gaming subsidiary of Intracom is to get a foothold in the Far East. Intralot's CEO Constantine Antanopoulos told the Athens News that Asia is a priority for development. It is especially interested in buying gaming firms in China. Targets should be "small and smart", he said, using Intralot's existing presence in Turkey as a case in point. Intralot's operations in Turkey began with local players in which they jointly established a successful lottery company, Inteltek.
"The gaming market is really beginning to open up in China," he said. Changes are planned in sports betting and gaming machine law in China, Antonopoulos explained. Hong Kong-based analysts confirm regional markets could yield investment prospects for the private sector. "There has been a lot of talk in the last couple of months, about private companies setting up and applying for gaming licences in China," one such analyst told this newspaper. A Deutsche Bank research report said that new regulations are set to support games such as the local Keno as well as video-lottery machines. There is a possibility that the Chinese government might double the payouts on lotteries, which could in turn potentially double sales. China's lottery market is strictly controlled by the government, and foreign investors cannot participate in their own right in offering lottery games or software at present. Rumours were also confirmed last week that Intralot has landed a new contract in Taiwan. On April 19 it announced that it has been selected as the preferred bidder by China Trust Commercial Bank (which is licence holder for Taiwan lottery) to provide the IT system, terminals and maintenance services for the local lottery. The project runs over seven years and amounts to 35 million euros of revenue for Intralot at the first phase alone. Lottery bid in pipeline In Turkey, Intralot was one of the first Greek companies to enter the market, and as group chairman Socrates Kokkalis has recently stressed, the group believes the country has great investment potential. He also confirmed that Intralot will bid for Milli Piyango, the Turkish National Lottery. The tender has not been launched yet, but when there is a development, Intralot will inform investors and the stock exchange, officials added. The National Lottery is run by the Turkish state and has just under USD 1 billion in revenues. Local conglomerates as well as OPAP, the state-controlled Greek Organisation of Football Pools, are also eyeing bids. Intralot's first venture into Turkey was via Inteltek, in which it is a 25% shareholder. The consortium operates Sportoto in Turkey, an OPAP-style football-betting player. It has proved very profitable, Intralot director for Turkey and senior officer for Inteltek, Costas Georgoulas, told the Athens News in an earlier interview. "We have been heartily welcomed here and found it a wonderful environment to do business in. From the early days we overcame potential barriers and developed a good and trusting relationship with the government, Turkcell and everyone concerned," he said. Turkcell owns 50% of the consortium. Still mulling over Telsim stake Separately, parent group Intracom still has an option to acquire 10 percent of Turkey's mobile player Telsim. Kokkalis said his firm has not yet decided on whether to acquire the 10% stake. The lower end of analysts' estimates put the value of the stake at EUR 380 million, although since Vodafone acquired Telsim for USD 4.55 billion, a sale price of over USD 500 million is expected for the 10% stake, they add. Source: Athens News.
Turkey -- where only fools rush in? Alpha Bank and Eurobank EFG are not ready to announce a deal in the wake of National's mega-buy. On the contrary, they prefer a watch-and-wait strategy By Elaine Green
April 14, 2006 -- Economic diplomacy has
always been further ahead than its political counterpart when it
comes to Turkey and Greece, analysts reckon. In the late 1990s,
when relations started to warm again between the two countries, it
was the business community that was at the forefront of the thaw,
a leading banker pointed out to the Athens News. Following
the National Bank of Greece's (NBG) acquisition of Turkey's
Finansbank earlier this month, there are numerous deal scenarios
running rife. Whilst the road has opened up for other banks to
follow suit in the medium term, some reports would have the reader
believe that the likes of Eurobank EFG and Alpha Bank are ready to
announce tomorrow a new Turkish banking acquisition. Indeed,
almost every day last week reports were released with different
rumours linking almost all leading Greek banks with every
plausible target in Turkey. The reality is that in
the longer term the NBG buy has seemingly opened the way for
further deals but, as one banker remarked, "timing is
everything" and the Turkish market "could probably not
stomach another Greek buy of a Turkish bank with the next few
months". Reactions in Greece have been
positive -- but if a Turkish bank were to take over a Greek bank,
the nationalists would surely come out of their dens, just as they
have in a few minority demos in Istanbul, observers remark. Yet a
significant Turkish investor in a Greek bank may soon be closer to
fact than mythology. Turks on NBG board? In
the case of NBG, its ownership structure is set to change. Already
it lies somewhere between a state-controlled and private bank, due
to the high percentage of institutional investors with stakes,
although all are under 5%. The Greek state has ultimate control
over policy and makes top appointments. Yet NBG's ownership of
Finansbank could act as a trigger to transform the Greek bank's
structure, an NBG source told this newspaper. "This
is an aspect of the deal I have not so far seen reported, but it
is a very significant one," he added. The structure of NBG is
likely to change as a result of the deal, he said. Asked if this
would mean that Finansbank Fiba Holdings could buy into the bank
at a later stage, he declined to comment, but said that the
Turkish deal would transform the nature of National. Fiba
Holding chairman Hüsnü Özyeğin said he would like to take a stake
in NBG if one had been available as part of the deal, but this is
not the case at present, he told us, apparently leaving the door
open for such a future possibility. Clearly NBG is not quite ready
for a Turkish shareholder yet -- despite Özyeğin's roots being
tied closely with Greece. His family is of Turkish-Cretan origin.
He can communicate in basic Greek and has an obvious admiration
for the country and NBG. Alpha denies
Denizbank buy Meanwhile, talks are
underway between other Greek banks and Turkish targets, but the
protagonists are keen to avoid the limelight. Alpha
Bank last week released an announcement on Turkey's Denizbank.
"In relation to certain articles in the financial press which
indicate Alpha Bank as having expressed interest in participating
in a sale process of the Denizbank, Alpha Bank announces that the
articles in question express presumptions of their authors , and
do not reflect the reality," officials said. Denizbank has an
estimated value of EUR 2.35 billion. Turkey's
Alternatifbank and Şekerbank are also not on its
immediate shopping list, executives maintain. "The press is
linking almost every bank in Turkey with us since the National
Bank of Greece's acquisition of Finansbank," a source at
Alpha told this newspaper. "Officially, it is not in our
business plan to acquire a bank in Turkey, but to expand in the
Balkans," he added. "Unofficially, we are
looking around the Turkish market very informally, but we have not
got as far as pinpointing a target yet," he said. The sale of
51% of Turkish bank Şekerbank to listed Dutch bank Rabobank
collapsed in February, following a Turkish court ruling that the
sale price of EUR 78 million offered by Rabobank was too low.
Rabobank is to pay EUR 141 million for the stake, which it
declined to do. Turkey's Tekfen Bank is seen as the
most plausible takeover target in the pipeline for Alpha, however,
sources say. Eurobank EFG CEO blows cool on
buys Rumour mongers have also linked Eurobank
EFG with an imminent buy of Şekerbank. But Nicholas
Nanopoulos, chief executive offer, told this newspaper that this
is "just press talk", adding that the bank is not at the
stage of focusing on any specific targets in Turkey yet. However,
he did not deny interest in eventual acquisitions, but said EFG
was watching the market "to see how it develops".
Source: Athens News.
Major foreign
strategic investments in Turkey's banking sector From National with love
Greece's leading bank has become the proud
owner of one of Turkey's most dynamic financial players
By Elaine Green
April 7, 2006 -- Some Turks might be wary of Greeks bearing gifts, but the Ozyegin family have welcomed with open arms National Bank of Greece's offer to buy Turkey's Finansbank. In a landmark deal paving the way for other Greek enterprises to buy into Turkey's would-be EU economy, NBG is set to pay EUR 2.3 billion for an initial 46%
stake. The buy has been dubbed as the largest ever overseas investment by a Greek company.
After approvals have been granted towards the second half of July, NBG will prepare for a public offer on the Istanbul Stock Exchange to gain a controlling stake of
Finansbank.
The market liked the news, with NBG shares up over EUR 2 apiece on April 4, despite trading being suspended the day before and the fact that it will fund the buy via a EUR 3 billion rights issue to help pay Finansbank as well as fuel further regional acquisitions. Finansbank ranks fifth in Turkey by assets of 11.61 billion euros. It has 5.2%
of lending market share, 208 branches and more than 1.7 million clients.
Turks and analysts pegged the deal as an endorsement of Turkey's efforts to join the European Union and a sign of greater cooperation to come between the two nations. Turkey started accession talks in October and EU member Greece has been one of its strongest supporters in this regard.
One over on the Yanks
NBG beat out much bigger US rival, Citigroup. Indeed NBG chairman and chief executive Takis Arapoglou was a former top executive at Citigroup. "No doubt he played up the geopolitical strengths of Greeks over American investors and also knew from the inside the weak spots of Citigroup," one industry observer speculated.
Asked by this newspaper why NBG was chosen over Citigroup, the chairman of Finansbank, Husnu Ozyegin, said that the two banks share a common culture and interest in developing their banking activities in southeast Europe. He also commented upon the sincerity and warmth the Greeks had shown him.
Ozyegin declined to comment if this could lead to further joint acquisitions or what these developments might comprise. Both parties also confirmed to this newspaper that NBG will not acquire any of the international activities of Finansbank, except in Malta. Citigroup was known to find the Romanian assets of Finansbank as one of its most attractive features. Reports had earlier claimed that Citibank was prepared to offer more than EUR 3.5 billion for 56%
of the target.
Anthimos Thomopoulos, NBG's chief financial officer, declined to say how much above the deal price offer per share it might be prepared to go to. He noted that the deal price is 7.16 new Turkish liras per share. NBG does, however, intend to keep Finansbank listed, he said. Finansbank's Netherlands, Russia and Romanian assets are not part of the sale.
Fiba Holding will remain as a shareholder of Finansbank with a 9.68%
share, and the Ozyegin family, along with the executive management team, will continue to hold their current positions. The remaining 44.32%
stake of Finansbank is owned by various local and foreign investors. The transaction will include Finansbank's subsidiaries Finans Invest, Finans Leasing, Finans Portfolio Management and IBTech, Fiba said.
Arapoglou boasted this deal made his bank "a true regional player", adding that "Turkey's economy is the biggest and fastest developing in southeast Europe. For the National Bank, its expansion into Turkey is an inseparable part of its strategy - especially in light of its European perspective". The purchase will increase NGB's reach to a region with 142 million residents, he said. The new NBG entity will be of a formidable size, with assets of EUR 69 billion and 1,059 branches, just under half of which are located outside Greece.
"Both the economic and political risks were taken into consideration to reach a decision, but it was decided it was worth making the investment," Arapoglou added.
Finansbank Chairman Hüsnü Özyeğin
will retain his 10%
stake in Finansbank under the terms of the deal. Özyeğin
said that "Greece has gone through the same convergence process ahead of EU entry that Turkey is going through now".
The move is seen as a green light for other Greek banks to make acquisitions in the country. Until now only Eurobank has been present in Turkey via a modest brokerage operation. Readers may remember that the Athens News last year predicted NBG's entry into the Turkish market and named Finansbank as an attractive potential target. Other banks such as Alpha and Piraeus also told this newspaper they were waiting for NBG to make the first move into the neighbouring country. Denizbank, a Finansbank peer, is now tipped as a likely target for Alpha.
NBG will not stop there. Buys in Serbia and Romania remain on the agenda, Thomopoulos told us. NBG has been shortlisted for Serbia's Panonska Banka and has been invited to submit a binding bid for Vojvodjanska Banka, a target also tipped by this newspaper as being on NBG's list more than a year ago. Egypt's market looks good, Thomopoulos confirmed, whilst not wanting to commit himself to giving a view on Alexandria Bank, the country's flagship privatisation launched last week.
Numerous speakers at the Economist Conference's "New Priorities" event last week (April 4-6) referred to the merits deal as well as Piraeus Bank's pioneering effort for the sector in Egypt via an earlier buy.
Source: Athens News.
Greece, Turkey seek to boost trade
ties
April 5, 2006 -- Greece and Turkey are seeking to boost trade ties by establishing regular
co-operation, Greek Economy and Finance Minister George Alogoskoufis said
today.
After a meeting with Turkey's visiting
Minister of State for External Trade, Kürşat
Tüzmen, Alogoskoufis told reporters that ways would be found of increasing the volume of trade.
"I reiterated to Mr. Tüzmen Greece's standing policy of supporting Turkey's European outlook coupled with adherence to EU specifications. Turkey's incorporation into the EU will have a beneficial impact for both countries and for the wider region," he added.
Welcoming Greece's position over Ankara's EU entry bid, Tüzmen said the two countries shared a complementary role.
He also noted that the private sector was ahead with ministries in both countries lagging slightly, welcoming National Bank of
Greece SA's acquisition this week of Finansbank AD, which he said demonstrated the level of confidence between Greece and Turkey.
Only 10 Turkish companies are operating in Greece
compared to 228 Greek firms with a presence in the neighbouring country.
"Our aim is to increase the number of firms doing business in both
countries... Over the last three years, the volume of bilateral trade has doubled,"
Tüzmen said.
Trade data
The trade balance between the two countries remains in favour of Turkey. In 2005, the trade deficit was 245.5 million US dollars. In 2004, Turkey was the seventh-largest recipient of Greek exports, accounting for 4.52% of total sales abroad. Turkey ranked 15th amongst countries that exported to Greece, with a 2.32%
share. On the basis of Turkish data, Greece is 13th among recipients of Turkish goods at 1.9%, ranking 34th on the basis of exports towards Turkey at 0.6%. According to 2004 data, Greek exports to Turkey in recent years have been dominated by fuel (29.9%), cotton (23.7%) and plastics (14.3%). In the same year, Turkey exported a wide range of manufactured industrial goods to Greece including iron (14.4%), vehicles (10.3%), machinery (7.1%), electrical sound equipment (6.5%), and iron products (5.5%).
Source: ANA.
NBG Group to acquire
Finansbank AS
Özyeğin family nets EUR 2.3 billion
for 46% stake
April 5, 2006 -- State-run National Bank of
Greece SA (NBG) announced it agreed to pay the Turkish Özyeğin
family EUR 2.3 billion for a 46% stake in Finansbank, Turkey's
fifth-largest private bank.
NBG's latest acquisition marks the largest foreign
investment ever made by a Greek company in Turkey and the first major
multi-billion-euro Greek-Turkish deal to date.
In May, NBG will seek shareholders' approval for a
rights issue of up to EUR 3 billion to finance the acquisition.
The subscription period will run from the end of May
through to the beginning of June, while the share capital increase is
expected to be completed in July.
Özyeğin's Fiba Holding AS of Turkey will
purchase Finansbank's international holdings, excluding Malta,
from NBG for USD 580 million.
Commenting on the transaction, Takis Arapoglou,
Chairman & Chief Executive Officer of NBG, said: "This is a historic moment for NBG as it takes this transformational step to
becoming the leading international banking group in the South-East European region. The addition of such a high quality business and management
team strengthens us enormously." Arapoglou added that Finansbank's
name will remain intact in Turkey.
Commenting on the deal, Hüsnü Özyeğin, Founder and Chairman of
Finansbank, said: "It gives us great pride that Finansbank, with its unique approach to
banking is recognized by an international bank and as a demonstration of
this faith the executive management team of Finansbank is requested to
continue in their current positions. Our new partner will further expand the
scope of our stakeholders and customers, especially with its strong presence
in the South-East European region." The Greek financial group has
undertaken to retain Finansbank's local management, led by
Harvard-educated billionaire Hüsnü Özyeğin,
although Finansbank's board of directors will consist of five
members appointed by NBG and two members from Finansbank -- of
which one should be Özyeğin himself. Since Finansbank is listed on the Istanbul bourse,
NBG's mandatory tender for up to 44.3% of Finansbank
remaining shares should be launched in July -- following the
completion of the Greek bank's acquisition of an initial 46% stake -- and
concluded in October. If the tender process proves to be
successful, NBG will control 90.3% of Finansbank. But in case minority shareholders will not fully subscribe to
NBG's tender, and assuming the Greek banking group does not have
any other expansion plans, any unused capital will need to be
returned to shareholders by the fourth quarter of this year.
"The Turkish banking sector is expected to be one
of the most dynamic banking sectors in Europe," a joint statement
said, adding that the key features of the transaction were as
follows:
NBG has agreed to acquire from FIBA Holding and its affiliates a 46.0%
interest (437 million Tradable Shares) in the Ordinary Shares of Finansbank and 100.0% (100 shares) of the Founder Shares for a total consideration of USD 2,774 million (TRY 3,737 million, EUR 2,291 million) of which USD 451
million (TRY 607 million, EUR 372 million) relates to the Founder Shares and
USD 2,323 million (TRY 3,129 million, EUR 1,918 million) relates to the Ordinary Shares. The combination of Greece's largest bank with one of Turkey's leading mid-market banks creates the leading
South-East European banking group, with a presence in six countries outside Greece. The complementary geographic fit
diversifies NBG's footprint into the high growth Turkish market. At the agreed purchase price of TRY 7.16 per Tradable Share and the
agreed purchase price for Founder Shares, this represents a price of 3.6x
2005 year end pro-forma consolidated book value and 17.8x pro forma 2005
earnings. The price paid for the Tradeable Shares is in line with the one
month and three month volume weighted average price of the Finansbank shares
traded on the Istanbul Stock Exchange. NBG intends to launch a Mandatory Offer for the remaining Ordinary Shares held by the minority shareholders of Finansbank in
the second half of 2006 following receipt of the required regulatory approvals and its acquisition of the Founder Shares and the 46.0% interest
in the Ordinary Shares. If NBG acquires less than a 4.01% additional stake
(38 million Tradeable Shares) of the Ordinary Shares through the Mandatory
Offer, FIBA Holding and its affiliates have agreed to sell to NBG sufficient
Ordinary Shares such that NBG will achieve a 50.01% ownership position in
Finansbank upon completion of the Mandatory Offer. FIBA Holding will retain a residual stake of 9.7% (92 million
Tradable Shares) in Finansbank, subject to any additional shares sold to NBG in order
for NBG to achieve a 50.01% stake in Finansbank upon completion of the transaction. This residual stake will be subject to put and call
arrangements with FIBA Holding starting in 2008 for two years, including a
performance-based option price. An ongoing minority ownership and role as Chairman of Finansbank by Hüsnü
Özyeğin, the founder and current Chairman of Finansbank, will provide
continuity of leadership. In addition, the management team of Finansbank
will continue to manage Finansbank post the completion of this transaction. At closing, expected to occur in mid-July, FIBA Holding will purchase from
Finansbank its international operations (excluding Malta) for a purchase
price of USD 580 million (EUR 479 million). An international accounting firm
has provided an opinion to the board of Finansbank on the fairness of the
purchase price. For the year ended and as at December 31, 2005, net profit
for the International Operations is estimated at TRY 114 million (EUR 72
million) and shareholders' equity was TRY 364 million (EUR 223 million).
Finansbank is expected to realise a pre-tax gain on sale of the International Operations of TRY 417 million (EUR 255 million) in the second
quarter of 2006, which will remain with Finansbank at closing. NBG intends to launch a rights offering observing the pre-emption rights
for existing shareholders (the "Rights Offering") to assist in the financing
of the transaction. The Rights Offering will be for up to EUR 3.0 billion,
which may also be used in part to finance other acquisitions in the region.
The Rights Offering is expected to be launched in June 2006 subject to the
approval of shareholders at a general meeting, which is scheduled to
take place on April 27. NBG has received a pre-underwriting commitment in respect of the full amount of the Rights Offering from a group of international banks. Subject to applicable regulatory consents and NBG shareholder approval in
respect of the Rights Offering, the overall transaction is expected to be
finalised following completion of the Mandatory Tender Offer to minority
shareholders in Finansbank during the third quarter of 2006. Forbes ranks Husnu Özyeğin in 512th
position among
the world's richest people for the year 2006.
Özyeğin, who resides in Izmir, has extensive
international holdings, including a shopping mall in Romania and
banks in The Netherlands, Belgium, Germany, France, Switzerland,
Ireland, Russia as well as Romania. During a conference call on April 5, Özyeğin
pointed out that, among many other benefits, the NBG-Finansbank
alliance should bring both banks' respective customers together
from areas such as tourism, shipbuilding and commerce.
NBG believes the combination of NBG and Finansbank is strategically and financially attractive for the major Greek financial group. Since 2000, NBG has steadily built up a strong presence in the region, through acquisitions and greenfield start-ups. Its
South-East Europe ("SEE") regional strategy aims at diversifying its operations and enlarging its footprint to cover a region with attractive economic prospects. The combination with Finansbank will create the leading banking group in the dynamic economies of
SEE, with a presence in six countries in the region outside Greece:
Banking operations in Greece, Turkey, Albania, Bulgaria,
FYROM, Romania and Serbia. Total assets of EUR 68.6 billion, customer loans of EUR 35.9 billion and
customer deposits of EUR 47.2 billion as at December 31, 2005. Over 10 million customers, serviced through a combined branch network of
1,030 branches. With its strong mid-market position in Turkey, recognised strengths in retail Expected to be EPS accretive after closing; An acquired 2005 P/E multiple of 17.8x which compares with the equivalent
2005 P/E multiple for NBG of 18.0x; and Material future synergy potential, particularly in respect of the
opportunity to optimise Finansbank's funding structure given both the stronger credit ratings of NBG and NBG's customer deposit-to-customer loan
surplus. Details of the transaction
NBG has agreed to acquire from FIBA Holding and its affiliates, a 46.0%
interest (437 million shares) in the Ordinary Shares of Finansbank and
100.0% (100 shares) of the Founder Shares for USD 2,774 million (EUR 2,291
million) of which USD 2,323 million (EUR 1,918 million) relates to the
Ordinary Shares and USD 451 million (EUR 372 million) relates to the Founder
Shares.
Upon receipt of the necessary regulatory approvals and after completion of
the initial acquisition of 100.0% of the Founder Shares and 46.0% of the
Ordinary Shares, NBG intends to launch a Mandatory Offer for the remaining
44.3% of the Ordinary Share capital of Finansbank not controlled by FIBA
Holding. If NBG were to acquire all of the Ordinary Shares pursuant to the
Mandatory Offer, it would have a resulting ownership position of 90.3% (858
million Tradable Shares). If NBG acquires less than a 4.01% additional
stake (38 million Tradable Shares) through the Mandatory Offer, FIBA
Holding has agreed to sell to NBG sufficient Ordinary Shares such that NBG
will hold 50.01% of the Ordinary Shares in Finansbank upon completion of the
Mandatory Offer.
FIBA Holding will retain a residual stake of 9.7% (92 million Tradeable
Shares) in Finansbank, subject to any additional shares sold to NBG in order
for NBG to achieve a 50.01% stake in Finansbank upon completion of the
transaction. This residual stake will be subject to put and call arrangements with FIBA Holding for two years from the second anniversary of
the closing of the acquisition of the initial share purchase from FIBA
Holding, including a performance based option price.
NBG expects to incur pre-tax fees and costs associated with the transaction and the subsequent rights offering of approximately EUR 75 million. These
costs are expected to be all incurred during the 2006 financial year.
Synergies
NBG expects material synergies to arise from the acquisition over the medium
term. The principal sources of such synergies are expected to arise from:
The wholesale funding advantages for Finansbank, as part of an overall
more strongly rated group. Finansbank's long term credit ratings are B1 by
Moody's and BB- by Fitch. This compares to the long term credit ratings of
A2 by Moody's, A- by Fitch and BBB+ by Standard & Poor's for NBG. As at December 31, 2005, NBG has a customer loans-to-deposits ratio of
70.6% versus an equivalent ratio of 137% at Finansbank. NBG therefore expects to achieve material interest cost synergies through the use of its
EUR-denominated deposit surplus to fund Finansbank's high loan growth. Optimisation of the combined group capital structure, with Finansbank
benefiting from the economic risk capital diversification benefits of belonging to a well rated and diversified international banking group. Shared best practice between the two banks, with NBG's recognised
strengths in mortgages, insurance and asset management, and Finansbank's
strengths in credit cards and SME banking. Optimisation of the SEE cost base in areas such as back office processing
and IT. Sale of international operations At closing, FIBA Holding will purchase from Finansbank the following
international operations (together the International Operations) for a purchase
price of USD 580 million (EUR 479 million):
41.8% of Finansbank Romania SA; and 100.0% of Dutch-based Finans International Holding
NV, which comprises subsidiaries in Russia, Switzerland, The Netherlands and a 40% interest in Finansbank
Romania SA. Finansbank will retain ownership of Finansbank
Malta Ltd., a corporate banking business used to support
Finansbank's Turkish banking operations.
For the year ended and as at December 31, 2005, the net profit after tax for the
International Operations was TRY 114 million (EUR 72 million) and the book value
was TRY 364 million (EUR 223 million). Finansbank is expected to realise a gain
on sale of the International Operations of TRY 417 million (EUR 255 million) in
the second quarter 2006, which will remain with Finansbank at closing.
Finansbank's Board of Directors has received a fairness opinion from an
independent international accounting firm on the value of the International
Operations.
Rights issue
As at December 31, 2005, NBG had a core tier I ratio of 8.9% and a tier I
ratio of 12.3%. Pro forma for the anticipated sale of Atlantic Bank, NBG has
a core tier I ratio of 9.9%. NBG intends to undertake a rights issue for up
to EUR 3.0 billion as part of the financing for the transaction.
NBG's Board of Directors has called for an EGM to approve the Rights Offering.
The proposed Rights Offering structure is as follows:
Offering Type: Rights offering Securities offered: Newly-issued NBG ordinary shares offered in
subscription to NBG ordinary shareholders Offer size: Up to EUR 3.0 billion Subscription rights: Granted and traded on the Athens
Exchange (ATHEX) Listing of Rights: ATHEX NBG lock-up: 180 days NBG has received a pre-underwriting commitment in respect of the full amount
of the Rights Offering from a group of international banks. Timetable and required approvals The transaction is expected to close in July, after having obtained all the
necessary approvals. Following the closing, NBG will launch a Mandatory Offer for the remaining minority shareholders. Completion of the Mandatory
Offer is expected around October 2006. The General Meeting for NBG shareholders to approve the Rights Offering is
expected in May, while the subscription period is expected to start in June.
The new shares would be expected to start trading during July. The transaction will be subject to customary approvals from the Turkish
Banking Regulator (BRSA), together with certain other regulatory approvals including the consent of the Bank of Greece. The necessary approvals are
expected within approximately two months of signing. Furthermore, the Mandatory
Offer will involve filing of documentation with Turkey's Capital Markets Board
(CMB). The CMB will approve the tender offer price and related documentation. NBG has obtained all relevant board approvals to proceed with the
acquisition of the controlling shareholding and the Rights Offering. NBG will not require shareholder approval for the transaction, while it will
need shareholder approval for the Rights Offering in connection with the transaction. Advisers Credit Suisse and Goldman Sachs are acting as joint financial advisors to NBG.
Freshfields Bruckhaus Deringer and Pekin & Bayar are acting as legal counsel to
NBG. Morgan Stanley is acting as financial advisor to FIBA Holding and its
affiliates. Verdi ve Yazici is acting as legal counsel to FIBA Holding. Greek
banks closely watch Turkish banking sector The Turkish banking sector is expected to be one of the most dynamic banking
sectors in Europe benefiting from: a population of 70 million people; a 2005
nominal GDP of EUR 295 billion; a reformed and well regulated banking sector
underpinned by strong macroeconomic reforms; and low banking sector penetration
rates relative to Western European benchmarks. Greek banks are interested in acquiring Turkish credit institutions,
Arapoglou, who also serves as President of the Hellenic Bank Association (HBA), told Turkey's Anadolu news agency on November 8, 2005. He said that Greek banks were closely watching the sector in the neighbouring country.
Arapoglou was in Istanbul to meet with his Turkish counterpart, Ersin
Özince, Chairman of the Banks Association of Turkey. The
NGB Chairman and HBA President noted that foreign investors accounted for
approximately 66% of trade on the Istanbul Stock Exchange compared
to about 35% for the Athens Exchange (ATHEX). The vast majority of these are institutionals, he added. ATHEX-listed
NBG, which to date maintained a Representative Office in Istanbul,
headed by Antonis Kamaras, is a member of the HBA.
Sources: INVgr, NBG, Isotimia,
Anadolu.
Aktor and Enka land USD 1.9 billion contract in
Oman
Turkish-Greek joint venture to build Phase One of one of the largest master-planned, mixed-use developments ever to be developed in the Middle East
December 30, 2005 -- A consortium consisting of Istanbul-based Enka Insaat ve Sanayi AS (Enka Construction & Industry Co., Inc.) and Aktor, the construction
business unit of Greece's Elliniki Technodomiki
TEB Group, signed a memorandum of agreement for the first phase of construction of
an ambitious new project: the Blue City
at Al Sawadi in the Sultanate of Oman.
Blue City's Phase One project was awarded to the Turkish-Greek consortium
by Al Sawadi Investment and Tourism Company
(Asit), developers of the new city that will be located approximately 100 km. north of Muscat, Oman's capital, and a 25 minutes' drive from the Seeb International Airport.
Under the terms of the agreement, Aktor will undertake construction worth USD 1.9 billion, with the final segment due for completion in 2012.
The overall project, at a total estimated cost of EUR 20 billion, contains 10 phases over 15 years and is one of the largest master-planned, mixed-use developments ever to be developed in the Middle East. It will cover 34 square kilometres of coastline near the capital and is expected to attract approximately two million tourists annually.
Phase One will include four hotels with a total of around 1,000 rooms, two world-class PGA golf courses, a shopping complex and 5.5 square kilometres of freehold residential real estate, a tourist village, heritage village, shopping complex, amphitheatre, city hall and all associated amenities such as a primary school, nursery and kindergarten, health centre, police station, post office and a mosque. The first phase will also include a sophisticated water-recycling facility for the irrigation of all landscaped areas, including the golf courses.
In 2005, through the absorption of Aktor SA, the
ATHEX-listed Elliniki Technodomiki TEB Group implemented its
strategic plan aimed at expanding and penetrating the countries of
South-East Europe and the Middle East, undertaking the
construction of major projects, such as the Phase One development
of the Blue City. The Group has a backlog of EUR 2.1 billion, 42%
of which relates to projects outside its domestic (Greek) market.
Enka, Turkey's leading construction company in Turkey and one of the largest in the world, is also the parent company of the Enka Group, which comprises of 24 subsidiaries engaged in different fields of activities. Projects which are undertaken by Enka Construction as main contractor, are then assumed by the group members concerned according to their fields of specialisation.
This makes it possible for Enka to offer a full range of services. With more than half a billion dollars turnover, 1.300 technical and administrative personnel, 9,000 workers and a plant and equipment park worth EUR 250 million, Enka Construction operates on three continents. Sinan
Tara is Chairman of the Board of Enka, Anees Issa is Asit's Chairman, while Ahmed Abubaker Janahi, the man behind Blue City vision, serves as Asit's Vice Chairman.
Speaking to the Oman Daily Observer about the experience and skills that the Turkish and Greek construction groups bring to the project, Dr. Fari Akhlaghi, CEO of ReeMoon, is the client representative on the project, said: "Both companies, Aktor and Enka, are very experienced. Both are multi-disciplinary and they very much complement one another in terms of their capabilities. This project offers a significant opportunity to the two companies and their respective countries in the region and in specifically in Oman."
Sources: INVgr, Oman Daily
Observer, ANA.
Intracom SA has
right to buy
up to 10% of Turkish mobile operator Telsim from Vodafone Group PLC
December 15, 2005 -- Socrates P. Kokkalis, Chairman of the Intracom Group, said today that his ATHEX-listed company has an option to acquire up to 10% of Telsim Mobil Telekomunikasyon Hizmetleri AS, Turkey's second-largest mobile operator, from Vodafone Group PLC. He made these comments at the first repeated shareholders' meeting of Intracom's Extraordinary General Assembly, held at the Greek telecommunications and information technology group's headquarters in Peania, Athens.
Kokkalis referred to the recent acquisition of Telsim by Vodafone this week, when the world's leading mobile telecommunications company beat six rivals, most of them from the Middle East, to win an auction for Telsim with a USD 4.55 billion bid in an open auction tender where the highest bid won. Vodafone is acquiring the Turkish mobile operator from the Turkish Savings Deposit and Investment Fund
(SDIF).
Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone, said in a statement: "We are delighted to have won the tender for Telsim. With a larger population than every European country except Germany, and a penetration level of approximately 53%, the Turkish market represents a major growth opportunity. Our extensive operating experience and unique set of products and services positions us to compete effectively in such a youthful market and deliver a superior mobile experience to Turkish customers."
Vodafone believes its acquisition of Telsim represents a unique opportunity to gain control of a mobile business in one of the European region's biggest markets and is consistent with Vodafone's strategy of increasing its exposure to growth markets.
According to a Vodafone statement, the principal benefits to the company are:
Exposure to the attractive and growing Turkish market
Population of 72 million people -- the fourth largest market in which Vodafone controls an operator Market penetration of approximately 53% with significant further growth potential Fast-growing and young population, forecast to grow at 1.4% CAGR until 2010 and with approximately 47% under the age of 25 Population expected to be greater than Germany's by 2017 Full control of a fast-growing number-two mobile operator
43% revenue growth in the first 7 months of 2005 compared to the same period in 2004 Customer growth of 53% and 2.8 million net additional customers in the 12 months to June 30, 2005 Approximately 9 million customers Uniquely positioned to capture the benefits of a turnaround of Telsim The business has historically been under-managed and suffered from under-investment in its network and customer propositions Vodafone to leverage its position in GSM networks, branding and successful customer propositions to turnaround the business Turkey's proximity to other Vodafone operations enables meaningful One Vodafone programme benefits including roaming opportunities from Turkish communities present in other Vodafone markets in Europe Attractive corporate market opportunity Transaction overview In addition to the consideration price, Vodafone will be required to pay USD 0.4 billion of VAT which will be recoverable against Telsim's future VAT liabilities. Vodafone expects to recover this payment over the short to medium term and this has been included in Vodafone's valuation of
Telsim.
The transaction is subject to approval from the SDIF Board and Turkish regulatory, legal and competition authorities. Vodafone expects the transaction to close in the first quarter of calendar year 2006.
Investing to capture future growth The acquisition is expected to enhance Vodafone's revenue and EBITDA growth profile, however Vodafone expects Telsim to make net losses in the short to medium term as it invests in the network, building scale and a stronger customer and brand proposition. Consequently Vodafone expects the transaction to be dilutive to adjusted earnings per share in the short to medium term.
GSM 900 operator Telsim went live in May 1994.
Listed on the Athens Exchange since June 28, 1990, Intracom is a provider of information and communications technology solutions and primarily serves the telecommunications, government, banking, enterprise and defence sectors. Headquartered in Athens, Greece, the company has offices in 15 other countries and world-wide has approximately 5,450 employees. Focusing on South-East Europe, the Middle East and North Africa, Intracom reported total revenues in 2004 of EUR 620.4 million. The company is expected to announce shortly the outcome of cooperation talks with AFK Sistema JSFC (LSE: SSA) of Russia. Founded in 1993, Sistema develops and manages market-leading businesses in fast-growing service-based industries, including telecommunications (MTS, MGTS, Comstar United Telesystems), technology (NIIME and MIKRON, STROM telecom, Sitronics), insurance (ROSNO), banking (MBRD), real estate (Sistema-Hals), retail (Detsky Mir Group) and media (SMM).
Sources: Vodafone
Group, Intracom, INVgr.
Aegean Business Bank
(ABB) to become first Greek-Turkish commercial bank
December 4, 2005 -- An application to establish the first-ever joint Greek-Turkish commercial bank is expected to be filed with the
(central) Bank of Greece next month.
According to a business plan unveiled by the Aegean Business
Bank (ABB)'s investors, the to-be-established bank aims to open 26 branches
with 360 employees in Greece and Turkey over the next five years, along with
a flotation on both the Athens and Istanbul bourses. The new bank
has ambitious plans and forecasts deposits to come close to EUR 2
billion with loans exceeding the EUR 1 billion mark during its
first five years of operations.
Plans for this new venture were unveiled in Athens by Panayiotis Koutsikos, Chairman of the Greek-Turkish Chamber of Commerce (E.T.E.E.), Dimitris Alexopoulos, a representative of the founders' committee, and Ali Tuna Turkay, a representative of the Izmir Chamber of Commerce.
The plans were made public during the "Money Show 2005"
forum, which was held at the Athens Hilton Hotel on December 3-4,
2005.
ABB will commence its operations with a share capital of EUR 60
million. It will emphasis on serving corporate clients with
activities in both neighbouring countries, but will also be
focusing on consumer banking (mortgages, consumer loans, credit
cards), bancassurance (the bank is currently already in discussion
with an insurance group in view of offering insurance products),
mutual funds, leasing, investment banking, etc.
ABB
is the result of extensive market research and the need for closer entrepreneurial ties between the two
countries, according to a company statement. The brainchild of
this new bank is believed to be the E.T.E.E. along with a group of
bankers, who in February 2005 started bringing the idea to life.
Sources: ABB, ANA, INVgr.
Intralot SA
increases participation in Inteltek to 45% from 25%
November 29, 2005 -- Athens-based Intralot SA, a leading global supplier of integrated gaming and transaction processing systems,
announced today it agreed to
purchase a further 20% stake in
Inteltek, the Turkish sports betting operator, for EUR 67 million. With the completion of this agreement, Intralot will increase its stake in the company from 25% to 45%.
Inteltek has the exclusive contract to manage sports betting in
Turkey for eight years on behalf of Ankara-based Spor Toto Organisation,
Turkey's sports betting player similar to Athens-based, ATHEX-listed
Greek Organisation of Football Prognostics
SA (OPAP).
The deal is subject to approval from Turkish authorities. In 2005, which
Intralot said is the first year of full operation of betting in Turkey, the game's turnover is
expected to surpass USD 850 million. Since August 2005, the game
has been offered to the Turkish public through a network of 4,000 points of
sale (POS), which will be further expanded in 2006. The expansion of the sales network, the
increased media publicity and the continuously increasing interest in the game
in the Turkish market are expected to enhance the penetration of
betting over the next few years.
Constantinos Antonopoulos, CEO, Intralot, commented: "The increase of our participation in INTELTEK strengthens the Intralot Group's
presence in the promising Turkish gaming market and is expected to offer the Group increased participation in future earnings from the management of sports betting games in the country. Intralot's investment in
Inteltek will be the largest investment a Greek company has ever
made in the neighbouring country [Turkey]."
The 20% was acquired from the third founding
partner, Technology Holding, and Intralot has effectively got
joint management control of Inteltek together with Turkcell, the
Turkish mobile player, which was given first refusal on the buy.
But since Inteltek is non-core for Turkcell, it did not see it as
a priority, thus enabling Intralot to acquire the stake. Listed on the Athens
Exchange (ATHEX: INLOT), Intralot develops and delivers innovative, custom-made products and value added services to state-licensed lottery organisations and financial services providers world-wide. Intralot has 33 subsidiaries, eight business offices, more than 1,900 employees in 32 countries on five continents, and expects to report 2005 revenues of EUR 500 million.
The company boasts a broad portfolio of products and services,
extensive know-how of Lottery, Betting and Video Lottery operations,
global experience in sports games, and cutting-edge technology. For
fiscal 2005, Inteltek is on target for a turnover of around USD 1
billion, after seeing tremendous annual growth. A source familiar
with the matter noted that Intralot plans two more gaming
acquisitions in Turkey, one of which is the Turkish National
Lottery. The Greek multinational, which is member of the Intracom
Group of Companies, is optimistic about acquiring Turkey's
National Lottery through a soon-to-be-launched international tender.
The Turkish Privatisation Authority is waiting for the government
to pass a new law that will enable the privatisation to be
launched by the end of this year. Kostas Georgoulas
is Intralot Turkey's director and Inteltek's assistant general manager. Sources: Intralot, Intracom, INVgr.
BSTDB funds Ankara airport development projects
August 5, 2005 -- BSTDB, the Thessaloniki-based Black Sea Trade and Development Bank, approved a loan of EUR 18 million for construction projects at Ankara's Esenboga Airport. The 12-year loan recipient is the
TAV Yatirim Yapim ve Isletme A.Ş.
-- made up of the Turkish construction groups Tepe and Akfen, the project's sponsors.
TAV is the abbreviation for Tepe-Akfen-Vie.
The project concerns the expansion, design, construction, operation and maintenance of the new terminal station serving domestic and international flights which is expected to triple the airport's overall annual capacity to up to 10 million passengers.
The financing of the project for the amount of EUR 196 million has been secured through Bayerische Hypo- und Vereinsbank AG and includes, among others, sponsorships and commercial loans from a number of banks and organisations such as the BSTDB and Proparco (Societe de Promotion et de Participation pour la Cooperation Economique), a subsidiary of the French Development Agency (AFD) dedicated to private-sector financing. BSTDB is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorised capital of SDR 1 billion (approx. USD
1.5 billion), the BSTDB supports economic development and regional co-operation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries.
Since its commencement of operations in 1999, BSTDB has approved
projects and trade finance operations totalling over USD 675 million.
BSTDB is rated long-term Baa2 and short-term P2 by Moody's. Sources:
MPA, BSTDB.
Greek wind energy
producer C. Rokas SA and Iberdrola of Spain sign
MoU with Turkish BEST A.Ş.
July 22, 2005 -- Arcadia Metal Industry C. Rokas SA, the
ATHEX-listed producer of wind energy in Greece, and its strategic
partner Iberdrola Energías Renovables II, SA of Spain signed a Memorandum of Understanding with
Balıkesir Elektromanyetik Sanayi ve Ticaret
A.Ş. (BEST A.Ş.) of Turkey regarding a new co-operation for
the development, construction and operation of five wind parks
throughout Turkey, with a combined capacity of 225 MW. The successful fulfillment of
this agreement will be an important step towards the reinforcement of the expanding activity of
C. Rokas in the Balkans. The first Greek producer to explore wind energy and currently market leader in Greece,
Athens-based C. Rokas has a 40% share of the market (December 2004).
In December last year, Iberdrola, the largest wind energy producer in
the world, acquired a 21% stake in C. Rokas for EUR 31.5 million with
an option to acquire up to 49.9% in the next few years, in a move to gain access to Greece's expanding wind energy
market. This alliance marked the first strategic investment by an international producer in the Greek wind sector. In
2004, approximately 85% (or EUR 28.5 million) of C. Rokas's total
revenues came directly from electricity production through the
company's 12 wind parks with an installed capacity of 188.5 MW.
Market experts expect this percentage to increase to 88% by 2008.
C. Rokas is expected to record 22.8% EBT CAGR (2004-2008),
according to Artion Securities SA. The company's aggressive
2005-2008 investment plan should transform it into a significant
energy player. The plan envisions the development of new wind
parks with an installed capacity of 410 MW over the next four
years, with a total cost of EUR 410 million. Today,
the total installed electricity capacity in Greece (12,700 MW) is
dominated by former state monopoly Public Power Corporation SA (PPC,
also known as "DEI" in Greece).
Bilateral Greek-Turkish
relations discussed at Rodopi Chamber
June 8, 2005 --
Necmi Uğurlu, Commercial Counsellor at the Turkish Embassy in Athens,
paid a visit to the
Komotini-based Chamber of Commerce and Industry of Rodopi in North-East
Greece. He was accompanied by senior staff from the Turkish consulate.
The Turkish officials met with Nikolaos I. Angelidis, First Vice-President of the Rodopi Chamber, and exchanged views on issues concerning bilateral trade relations and ways
to strengthen bilateral business relations between Greece and
Turkey. Other issues that were discussed included the promotion of Greek products in Turkey, the banking system in
Greece's neighbouring country, and the adjustments that need to be made to meet
EU demands.
The Macedonian Press Agency (MPA) reported Angelidis as saying that the first step of Greece's co-operation with Turkey passes through Thrace due to the Muslim community in the region, which can assist in the efforts for the economic co-operation of the regions on both sides of the borders,
thereby forming a bridge of co-operation and friendship.
Source: MPA.
AmCham business delegation to Turkey
June 2, 2005 -- The American-Hellenic Chamber of Commerce, in co-operation with the Turkish-American Business
Association (TABA), is planning a business delegation to Istanbul from October 13-14, 2005 to be held at the Conrad
Hotel.
The purpose of the delegation is to create new partnerships between Greek and Turkish businesspeople and the program will focus on business matchmaking meetings. Morning plenary sessions will be dedicated to the exchange of views with Turkish ministerial officials.
If you would like to participate in this results-oriented mission, contact
Angela Boyatzis at the American-Hellenic Chamber of Commerce on +30 210 699 3559, ext. 21 or by E-mail:
a.boyatzis@amcham.gr. Fax: +30 210 698 5686.
Update on Gr. Sarantis SA's
commercial agreement with Hunka Kozmetic Sanayi A.S. February 14, 2005 -- According to a Gr. Sarantis SA executive, the
Greek cosmetic firm's recently-signed commercial agreement with Hunka Kozmetic Sanayi A.S. of Turkey is proceeding better than expected. In view of these positive developments, Gr. Sarantis is
considering acquiring a minority stake in the Turkish firm. Update on Intralot
SA's latest developments in Turkey
December 20, 2004 -- In 2002, the Inteltek consortium, in which ATHEX-listed Intralot SA
participates with a 25% stake, successfully deployed an integrated on-line system on behalf of
Ankara-based Spor Toto Organisation, Turkey's National Football Prognostics Organisation, while in 2004, it launched the Fixed Odds Betting game, for which the company has undertaken the full operational services.
Inteltek successfully completed its pilot-testing phase of the Betting game in Turkey in the beginning of August 2004.
As at June
30, 2004, betting was offered through 2,000 points-of-sale (POS) and is expected to reach 4,000 POS by the end of the year. Moreover, the company has started the first phase of its advertising campaign in Turkey in September 2004.
Intralot is a leading provider of state-of-the-art integrated gaming systems to lottery organisations world-wide. The firm delivers cutting-edge game design, network integration, transaction processing and value added services, ensuring efficient, secure and profitable operations for
Intralot's customers.
Based on its expertise, know-how and substantial experience, Intralot develops, operates and supports custom-made gaming solutions, including numerical, video and sports lotteries, as well as fixed odds betting, pari-mutuel (pooled) wagering, and instant lottery games.
With subsidiaries and business offices around the globe, today Intralot dominates in Europe and has secured a strong presence in the developing South American market. As the third largest lottery supplier in the world, Intralot,
which has established a foothold in North America and the Pacific Rim,
seeks to consolidate
its leadership position in the global market.
Athens-based Intralot is an affiliate of the Intracom Group.
Established in 1977, the Intracom Group is comprised of an
international network of independent companies specialising in the
design and implementation of integrated telecom projects, the
development and integration of IT systems and networks, the production
of telecommunication equipment, the development of application
software and the provision of services, as well as in the manufacture
of steel structures and electromechanical equipment, energy
production, construction, the development of integrated lottery
systems and real estate development.
With its headquarters in Athens, the Group includes
subsidiaries and participations active in Greece and Cyprus, the
Balkans (Albania, Bulgaria, Moldova, Serbia, FYROM, Romania, Turkey),
Western and Central Europe (Belgium, Luxembourg, Hungary, Czech
Republic, Croatia), the Middle East (Jordan, Dubai/United Arab
Emirates, Saudi
Arabia), USA and Russia. In the rest of its markets, Intracom is
active through local offices and international partnerships. In addition to Group member companies,
Intracom's global network of affiliated companies is engaged in the trade, production,
support and management of lottery software applications and related
electronic systems, as well as in insurance brokerage, investment
management, participation holdings, trade, etc.
Socrates P. Kokkalis is the founder, Chairman and majority shareholder (25.47% as at
February 18, 2005) of the Intracom Group of Companies and Chairman of
Intralot.
Sources: INVgr, Intracom, Intralot.
Related link:
Spor
Toto Organisation of Turkey chooses Intralot SA
(August 2, 2002) [premium content]
4th Greek-Turkish
Information Society Forum to be held in Istanbul All You Want to Know About FP6 (Sixth Framework Programme) and Beyond Dates: November 25 & 26, 2004 November 22, 2004 -- The 4th Greek-Turkish Information Society Forum titled "e-Transformation for All in South-East Europe" -- Challenges and Opportunities is scheduled to take place in Istanbul, November 25 and 26, 2004. Objective The ISIS project aims at improving the awareness of IST (Information Society Technologies) issues in South-East Europe and promote the participation of institutions and SMEs (small and medium-sized enterprises) based in this region in the CORDIS Sixth Framework Programme (FP6). The objective of this event is to form potential new projects and consortia for the FP6 (Calls 4 and 5) and other European Union projects. The Istanbul Forum will mainly address the strategic objectives of IST Call 4 and 5. Craft - collective research and collaborative research will also be addressed by the forum. Features of this Greek-Turkish Forum include opportunities for building up consortia for FP6 as well as international co-operation and business matchmaking opportunities. There will be a number of networking sessions as well as informative sessions during the Forum. The topics of these sessions will be decided based on the "Proposal for Project Ideas" submitted by researchers from South-East Europe. The event, which follows the IST 2004 held in The Hague earlier this month, has the ambitious goal of being the IST 2004 event of South-East Europe. Furthermore, the Forum will offer its participants the possibility of exploring opportunities for business matchmaking for ICT companies of the region. CORDIS (Community Research & Development Service) FP6
The FP is the EU’s main instrument for research funding in Europe. The FP is proposed by the European Commission and adopted by Council and the European Parliament following a co-decision procedure. FPs cover a period of five years with the last year of one FP and the first year of the following FP overlapping. FPs have been implemented since 1984. The Sixth FP (FP6) has been fully operational since January 1, 2003. At the Lisbon summit in March 2000, EU governments called for a better use of European research efforts through the creation of an internal market for science and technology -- a European Research Area" (ERA). FP6 is the financial instrument to make ERA a reality. CORDIS FP6 (Sixth Framework Programme) aims to contribute to the creation of a true ERA. ERA is a vision for the future of research in Europe, an internal market for science and technology. It fosters scientific excellence, competitiveness and innovation through the promotion of better co-operation and coordination between relevant actors at all levels. Economic growth increasingly depends on research, and many of the present and foreseeable challenges for industry and society can no longer be solved at national level alone. Strategic objectives addressed in Call 4
FP6 IST Call 5 Strategic Objectives addressed in Call 5
FP6 Co-operative research horizontal themes
INTERREG III : Cross-border co-operation between Turkey and Greece
Who should attend? The Forum aims at attracting a fairly broad audience consisting of IST-NCPs, academicians, researchers, representatives of small and medium-sized enterprises (both IT and non-IT SMEs) and government officials, mainly from the South-East European region. The participants are anticipated to be original project idea owners, potential partners for these projects and members of the Information Technology community in South-East Europe. Organisers and co-organisers The Forum is organised by the Turkish Informatics Foundation (TBV) and co-organised by the Athens-based Federation of Hellenic Information Technology & Communications Enterprises (SEPE). It has been funded by the European Commission through the ISIS project, an Accompanying Measure Project of the 5th Framework Programme (FP5) (IST-2001-33537). About the ISIS project
The ISIS project is a major effort to develop awareness about IST, facilitate the formation of project consortia and promote cooperation between partners in the South-East European region and the European Union. The deployment of innovative IST's applications and services is becoming a key factor for growth and welfare in all parts of Europe. This is especially true in the particular case of South-East Europe (SEE), which includes Greece, Turkey, Bulgaria, Romania and other countries in this dynamic region. There are many issues related to Information Society that need to be addressed, discussed and resolved in these countries. It is conjectured that sharing each other’s concerns, views and experiences and collaborating in producing solutions will be beneficial for all these countries. This project aims to do just that. ISIS FP6 Partner Search ISIS has developed a Web-based partner search tool for the FP6 IST programme. The idea is to provide a communication medium for SMEs interested in participating in IST projects. The tool welcomes everybody to create a profile for their companies, express their interest in IST objectives and give other companies the opportunity of finding them for FP6 project proposals. The tool offers an easy to use search component that enables users to set values for different parameters and see the list of companies in the company database which satisfy the criteria. Past events In the framework of the ISIS project, SEPE in co-operation with TBV organised the 3rd Greek-Turkish Information Society Forum, June 6-8, 2003, at the Sofitel Capsis Hotel on the isle of Rhodes. The objectives of the Forum were the exchange of ideas and the promotion of the co-operation on innovative applications and services of Information Society between the two countries as well as the promotion of collaboration in South-East Europe. Among other past events held in the same framework, the Bulgarian Association of Information Technologies (BAIT) organised the 4th Interbalkan IT Forum in Sofia, October 6-7, 2003. An ISIS Western Balkan Workshop was held in Belgrade, October 27-29 last year, while the First ISIS conference was held on September 25, 2002. ISIS partners
Related story:
Topos Communications SA eyes Turkey, Balkans November 22, 2004 -- Topos Communications SA, a dynamic privately-held, Athens-based Telematics and Fleet Management company, announced that it is eyeing the Balkans and Turkey as part of its international expansion plans. Better known as n-topos, the firm recently opened its new regional offices in Thessaloniki to better serve the needs of transportation and logistics companies in the rapidly-expanding region of Northern Greece and to create a hub for the company's expansion into the Balkans and Turkey. The firm has developed a large number of complex Telematics, Fleet Management and Information Technology infrastructure projects in Greece and overseas, and claims to be among the very few Greek companies that "exports knowledge" to international markets, from Central Europe to Chile and the Middle East. n-topos develops software applications delivering integrated turn-key solutions according to customer requirements. It is a project development enterprise that is rapidly evolving into a "Real-Time Economy" company, offering state-of-the-art solutions that include:
Some of its largest infrastructure projects involved Telematics systems, Fleet Management systems, Mobile and Wireless Communications, Telemetry and SCADA systems, end-to-end Telemetry Solutions, Geographical Information Systems, VLSI designs, and a plethora of RDBMS systems. Recent examples of such projects include: the new Athens tram; an integrated Fleet Tracking and Management Telematic System for 200 of ILPAP SA's electric trolley buses operating within the cities of Athens and Piraeus, the first system ever to have been deployed in Greece (the initials ILPAP stand for Athens-Piraeus Area Trolley Buses; the company is one of the major public transportation service companies of Athens); and AVL and Fleet Management solutions for commercial fleets, which have been supplied by n-topos to dozens of privately-run transportation and logistics companies. Other major clients include the Athens International Airport "Eleftherios Venizelos", state-run Hellenic Telecommunications Organisation SA (OTE), the Hellenic Ministry of Culture, the Cities of Thessaloniki, Aghios Dimitrios and Gerakas, and the West Athens Deve | ||||||||||||||
