ADQ acquires Odeabank stake, strengthening its commitment to financial innovation and providing expanded capital and synergies for Odeabank

Abu Dhabi-based investment giant, ADQ, has announced the acquisition of a 96% stake in Odeabank, a Turkish financial institution, from the Bank Audi Consortium. This strategic move marks a significant step in ADQ’s growing presence in Turkey and aligns with its goal to enhance innovation within the financial services sector.

The acquisition involves the purchase of Bank Audi’s stake in Odeabank, along with shares held by other key investors, including the International Finance Corporation, IFC FIG Investment Co. Sarl, and the European Bank for Reconstruction and Development. Founded in 2012, Odeabank ranks as Turkey’s 13th-largest private financial institution by loans and deposits. It has steadily grown its presence in the Turkish market, with 41 branches spread across 15 cities, focusing primarily on commercial lending. In addition, Odeabank has expanded its operations into retail and wealth management, positioning itself as a key player in Turkey’s banking landscape.

Mansour Al-Mulla, ADQ’s Deputy Group CEO, underscored the significance of this acquisition. “The acquisition of Odeabank reinforces our commitment to investing in assets that lay the foundation for the sustainable development of our portfolio companies and the wider economy,” Al-Mulla said. He emphasised that Odeabank stands to gain from new capital injections and synergies provided by ADQ’s diverse portfolio, which spans industries crucial to Abu Dhabi’s diversified economy, including health care, energy, transport, and logistics.

Under ADQ’s ownership, Odeabank is poised to advance its strategic growth and continue driving innovation in Turkey’s financial sector. This comes as ADQ seeks to further expand its reach and bolster technological advances within its portfolio. “We are confident that this acquisition will accelerate the execution of Odeabank’s growth plans and foster technological advancements in the financial services sector,” Al-Mulla added.

The acquisition of Odeabank follows a series of ADQ investments in Turkey, cementing its footprint in the country’s key sectors. Notably, in 2022, ADQ launched a $300 million fund in collaboration with the Turkey Wealth Fund, targeting companies that are pioneering or enhancing technologies in crucial industries. Additionally, ADQ expanded its portfolio in Turkey by acquiring Birgi Mefar Group, a pharmaceutical company that has since been integrated into ADQ’s life sciences holding company, Arcera.

For Bank Audi, this sale represents a strategic realignment. Khalil El-Debs, CEO of Bank Audi, commented on the transaction’s alignment with the group’s broader focus on its core markets in Lebanon and Europe. “This transaction aligns well with Bank Audi Group’s present strategic focus on its home market and its operations in Europe. We are pleased to have attracted the interest of a global institution like ADQ in acquiring Odeabank A.S.,” El-Debs stated.

The transaction is subject to regulatory approvals from Turkish authorities, including the Banking Regulation and Supervision Authority and the Competition Authority. J.P. Morgan served as Bank Audi’s sole financial adviser for this deal, providing a fair opinion.

As ADQ continues to diversify its portfolio, the acquisition of Odeabank signals its strategic commitment to Turkey’s financial sector and its broader goal of fostering sustainable economic growth across its investment holdings. Odeabank’s future looks promising as it prepares to leverage the vast resources and expertise of ADQ.