Freedom Holding Corp. to Acquire 99.32% Stake in Turkish Bank A.Ş.

Core Viewpoint - Freedom Holding Corp. has announced an agreement to acquire 99.32% of Turkish Bank A.Ş., marking a significant step in its expansion into the Turkish banking market, which serves a population of approximately 90 million people [2][3]. Group 1: Acquisition Details - The acquisition involves Turkish Bank A.Ş., which has been operational since 1982, while its divisions in the UK and Cyprus are excluded from the deal [4]. - The transaction is pending approval from relevant regulatory authorities in Turkey [2]. Group 2: Strategic Importance - This acquisition aligns with Freedom Holding Corp.'s strategy to develop its digital infrastructure in regions where it operates, allowing for the integration of investment, brokerage, and banking services [5]. - The CEO emphasized the potential for significant long-term growth in Turkey, with the country's GDP growing at approximately 3-4% annually [6]. Group 3: Technological and Market Expansion - Following the acquisition, the company plans to invest in technological modernization and expand its product offerings, focusing on retail customers and small to medium-sized businesses [6]. - Freedom Holding Corp. has been expanding internationally, having entered markets in Tajikistan and Georgia, and recently obtained a brokerage license in Abu Dhabi [8]. Group 4: Digital Ecosystem and User Base - The company's digital ecosystem serves over 11 million users, with its SuperApp user base in Kazakhstan expected to grow from 5 million to 8 million by the end of the year [9]. - The SuperApp offers a wide range of services, including traditional banking, insurance products, and various retail services [9]. Group 5: Institutional Interest and Financial Stability - Institutional interest in Freedom Holding Corp. is increasing, with notable shareholders including BlackRock and Goldman Sachs, and the company has been added to the Russell 3000 Index [10]. - The company's credit rating from S&P Global Ratings is reaffirmed at "B-" with a stable outlook, indicating financial stability and long-term growth potential [11].