The transaction is planned to be closed by the end of 2020 after receiving the approval of the Agency of the Republic of Kazakhstan for regulation and development of the financial market and other necessary permits.
"The creation of Kassa Nova Bank, its consistent development into a stable and successful financial institution and subsequent sale is a classical example of the implementation of a sound business strategy, which has proved its effectiveness even in difficult times. The announcement of this transaction confirms the stability and reliability of the Bank with good growth potential. Kassa Nova Bank will continue its work by providing high-quality services to its clients," said Guram Andronikashvili, Chairman of the Board of ForteBank.
Kassa Nova Bank is an independent medium-sized bank that specializes in providing financial services to small and medium-sized enterprises. In 2019, the Bank ranked 19th with assets of more than 120 billion KZT.
Timur Turlov, CEO of Freedom Holding Corp., noted that the Bank's shareholder and its strategy will remain the same till the end of this year. There will be no staff changes. According to Turlov, the company buys the Bank using its own funds. After the Bank acquisition, Freedom Finance plans to expand its product line.
"The advance payment to shareholder of the Bank has been made. We are plannng to rebrand and rename the Bank. The transaction amount is the Bank's equity multiplied by 1.1. The advance payment made $ 4.3 million. The remaining 90% will be paid after the closing of the transaction. We want to become a hub for foreign clients and a technology Bank. We are not going to open many branches. We will work as an online Bank. An essential detail of the agreement is that the major part of the loan portfolio of Kassa Nova Bank will be transferred to ForteBank by the time of completion of the transaction, because this business is outside the scope of activities of our holding," -Timur Turlov said.
Freedom Finance JSC is part of the international investment group Freedom Holding Corp., which provides financial services to clients in eight countries, including Kazakhstan, Russia and Ukraine. Shares of Freedom Holding Corp. are listed on the Nasdaq Capital Market, the Kazakhstan Stock Exchange, and the Saint Petersburg Stock Exchange. As of July 31, 2020, market capitalization of Freedom Holding Corp. amounted to 1.13 billion USD.
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