Bloomberg News

Akbank Slumps to 2009 Low After Citigroup Sells: Istanbul Mover

May 25, 2012

Akbank TAS (AKBNK), Turkey’s second-biggest bank by market value, slid to the lowest in almost three years after Citigroup Inc. (C:US) sold part of its stake at a discount.

Akbank slumped as much as 8.6 percent and traded down 6.2 percent to 5.44 liras at the close in Istanbul, the weakest since July 2009. Citigroup sold 10.1 percent of its 20 percent stake at a price of 5.24 liras per share for about $1.15 billion, according to an e-mailed statement today.

“The stock price is likely to converge towards the transaction price,” said Fatih Tugrul Topac, an analyst at Istanbul-based brokerage Ata Invest. “At 5.24 liras, the stock will be trading at 1.02 times estimated price-to-book value, which we believe offers a good value as the hangover of the Citigroup disposal will also be removed.”

Akbank shares declined 22 percent through yesterday’s close after Citigroup announced its intention to sell the shares on March 23.

Citibank, the third-biggest U.S. bank by assets, was Akbank’s second-biggest shareholder after Turkish holding company Haci Omer Sabanci Holding AS. (SAHOL) The U.S. lender said it reduced the holding to boost capital. Citigroup will keep its remaining 9.9 percent in Akbank for three years, Akbank said in a statement to the exchange after the market closed yesterday.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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Companies Mentioned

  • C
    (Citigroup Inc)
    • $47.0 USD
    • 0.10
    • 0.21%
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