OREANDA-NEWS. July 15, 2014. JSC Kazkommertsbank (“KKB” or the “Bank”) (LSE: KKB; KASE: KKGB), one of the largest banks in Kazakhstan and Central Asia, announces the completion of the acquisition of JSC BTA Bank (“BTA”) shares.

In accordance with previous agreements, on 30 June, 2014, Kazkommertsbank and Kenes Rakishev each acquired 46.5% of BTA Bank’s shares from JSC Sovereign Wealth Fund “Samruk-Kazyna” (“SK”). Simultaneously, SK transferred its remaining 4.26% stake in BTA to KKB in accordance with the Trust Agreement. This provided KKB with more than 50% of voting rights and operational control of BTA.

The transaction has been approved by the Board of Directors and at KKB’s Annual General Meeting of Shareholders. KKB has obtained the necessary permission from the Agency for Competition Protection and the National Bank of Kazakhstan.

Ms. Nina Zhussupova, CEO of Kazkommertsbak, commented:

“We are pleased that we were able to complete such a large and complex transaction in a timely manner. Today's event was the next major milestone in the implementation of our strategy, which is aimed at strengthening KKB’s position as one of the leading universal financial institutions in Kazakhstan and Central Asia. Now, together with other shareholders, we will focus on the process of integrating the two banks and reducing the level of non-performing loans. We believe that this transaction will have a lasting positive effect on Kazakhstan’s banking system and will improve its resilience to economic cycles.”

Magzhan Auezov, Chairman of the Board of BTA Bank:

“In our view, the merger of the two banks has several key advantages. Our branch network will immediately have a significantly larger geographical reach and our customers will have wider access to financial products and services. The product range of the new, combined entity will be much broader than the banks currently offer to the market separately. The first step towards integration has already been made; from 25 June, we cancelled additional fees for BTA and KKB cardholders withdrawing cash from BTA/KKB-branded ATM machines. As a result, the number of ATM machines available to customers of both banks has grown 2.5 times. The merger of KKB and BTA Bank provides a unique opportunity to consolidate both human and technological resources, which, going forward, will allow us to secure our leading market position and continue to provide our customers with the best products and solutions.”

Kenes Rakishev, new shareholder and the Chairman of the Board of Directors of BTA Bank:

“Today we have turned the page not only in the history of the country's oldest financial institution – BTA Bank – but of the banking sector as a whole. This transaction has drawn a line under the crisis support package, which the government was forced to provide in order to rescue and stabilise Kazakhstan’s banking system. Time has shown that this decision was the right one. I am glad that the ownership of BTA Bank ultimately landed in the hands of domestic investors. I am convinced that the new shareholders will make every effort to ensure that the bank takes only the best banking practices and experience into the future. I thank all BTA customers for their patience and support.”