The facade of an Odea Bank branch. Photo cropped and taken from the bank's Facebook page
The ADQ Sovereign Development Fund is reportedly in discussions with Bank Audi to acquire its Turkish subsidiary, Odea Bank, according to sources familiar with the matter contacted by Bloomberg. The bank's communications department, which was among the top three in the Lebanese banking system before the onset of the 2019 crisis, declined to comment on the information.
We were also unable to confirm reports from a source within the bank indicating that discussions on a potential acquisition of Odea Bank's assets by the fund, which manages over $200 million in assets, had been "suspended." Another source close to the matter stated that "negotiations are ongoing, although they are somewhat complicated," and added that ADQ is not the only potentially interested buyer.
However, sources contacted by Bloomberg confirmed that the discussions have extended over several months. They added that no final decision has been made, and it is not certain that ADQ will ultimately purchase the bank.
Odeabank is a banking brand, a medium-sized lender in Turkey, with assets of 87.3 billion Turkish lira ($2.6 billion). Bank Audi, which established the company in 2012, is its largest shareholder with a 76.4% stake.
In 2016, the International Finance Corporation, the private sector arm of the World Bank, the IFC Financial Institutions Growth Fund (FIG Fund), and the European Bank for Reconstruction and Development (EBRD) became shareholders of Odeabank after participating in its capital increase, Bloomberg further notes.