ABB Bank Completes 51 Pct Acquisition Of Uzbekistan’s Davr Bank
KUALA LUMPUR, Sept 15 (Bernama) -- ABB Financial Group has completed the acquisition of a controlling stake in Davr Bank, a commercial bank operating in Uzbekistan, with the transaction registered on Sept 10 at the Tashkent Stock Exchange.
Under the terms of the agreement, ABB Bank acquired 51 million ordinary shares of Davr Bank, representing a 51 per cent ownership stake worth approximately US$140 million, according to a statement. (US$1 = RM4.07)
Following the completion of the transaction, Davr Bank will commence operations in the Uzbekistan market under the “ABB Davr” brand as a universal bank, providing banking services to individuals, small and medium-sized enterprises (SMEs), and corporate clients.
Currently, Davr Bank serves more than two million customers, employs over 1,800 people and operates 43 branches and service centres across the capital and regions. Its total assets exceed US$2 billion, and it maintains a strong position, particularly in financing SMEs.
The official opening ceremony of the “ABB Davr Bank” project was held on Aug 23 during the state visit of Azerbaijan President Ilham Aliyev to Uzbekistan, with the participation of the presidents of Azerbaijan and Uzbekistan.
Following ABB Bank’s acquisition of a controlling stake in Davr Bank, its long-term credit rating was upgraded from B to B+ by S&P Global Ratings, with the outlook assessed as “Stable”.
S&P Global Ratings said that, if required, Davr Bank could receive strong support from ABB Financial Group, which has a higher credit rating profile.
Becoming part of ABB Financial Group will create additional opportunities for Davr Bank, including cooperation with Azerbaijani- and Turkish-capital companies operating in Uzbekistan, as well as integration with ABB Bank’s international money transfer services.
S&P Global Ratings also highlighted that ABB Bank’s acquisition of a controlling stake in Davr Bank aligns with ABB Financial Group’s strategic objective of expanding its geographic presence during the next phase of development.
-- BERNAMA