Published: 2023-06-22
OTP Bank, the second richest bank in Hungary, has acquired a stake in Ipoteka Bank, making it the first foreign player in the privatisation of the Uzbek banking sector.
OTP Bank Acquires Stake in Uzbekistan’s Ipoteka Bank
OTP Bank has acquired a 75% stake in Uzbekistan’s fifth largest financial services provider, Ipoteka Bank. With this acquisition, OTP Bank is expanding into Central Asia, becoming the first foreign player to participate in the privatisation of the Uzbek banking sector. In addition, this marks the first time that OTP Group will be operating in a Central Asian country.
Two-Step Acquisition Process
According to a sale and purchase agreement signed in December 2022, OTP Bank will purchase Ipoteka Bank's shares in two stages. In the first step, OTP bought 75% of the shares from the Uzbek Ministry of Economy and Finance. In the second step, the remaining 25% will be purchased in three years, and OTP Bank will acquire 100% of the shares.
Sándor Csányi leads the acquisition
Sándor Csányi, the head of OTP Bank, leads the acquisition and has been in talks with the Uzbek government since the end of 2020, on the possibility of participating in the privatisation of the Uzbek banking sector. Csányi is currently the second richest person in Hungary.
Conclusion
OTP Bank’s acquisition of Ipoteka Bank marks its entry into the Central Asian market and the first time a foreign player has participated in the privatisation of the Uzbek banking sector.
Questions & Answers
Which Hungarian bank has recently acquired a stake in the Uzbek Ipoteka Bank? OTP Bank, the bank led by Sándor Csányi, has acquired a stake in Uzbekistan's Ipoteka Bank.
What is the significance of this acquisition for OTP Bank? This acquisition marks the entry of OTP Bank into the Central Asian market, as they are the first foreign player to participate in the privatisation of the Uzbek banking sector.
What percentage of the shares of Ipoteka Bank has been purchased by OTP Bank in the first step of the acquisition? OTP Bank has purchased 75 percent of the shares owned by the Uzbek Ministry of Economy and Finance in the first step of the acquisition.
Will OTP Bank acquire the remaining 25 percent of the shares of Ipoteka Bank? Yes, OTP Bank will purchase the remaining 25 percent of the shares owned by the Uzbek Ministry of Economy and Finance in three years.
Which country is Uzbekistan's Ipoteka Bank located in? Uzbekistan.
Is Uzbekistan the first Central Asian country where OTP Group starts operations? Yes, Uzbekistan is the first Central Asian country where OTP Group starts operations.
Who is the current second richest person in Hungary? Sándor Csányi is currently the second richest person in Hungary.