ABB Acquires 51% of Davr Bank for 1.65 Trillion Soums

Tashkent, Uzbekistan (UzDaily.uz) — Azerbaijan’s International Bank of Azerbaijan (ABB) has acquired a 51% stake in Uzbekistan’s Davr Bank in a deal worth 1.646 trillion soums, or about US$140 million.

The transaction was completed on 10 September at the Republican Stock Exchange “Toshkent”, according to exchange data.

The purchase was executed through a series of six consecutive transactions. In total, ABB acquired 51 million ordinary shares of Davr Bank at a single price of 32,281.28 soums per share.

The completion of the acquisition was announced on 23 August during a meeting between Uzbek President Shavkat Mirziyoyev and Azerbaijani President Ilham Aliyev, where a video showcasing joint projects between the two countries was presented.

The two presidents took part in an online ceremony marking the opening of and laying the foundations for Azerbaijani investment projects in Uzbekistan. Davr Bank was among three projects officially launched at the ceremony.

Aliyev said at the time that a leading Azerbaijani bank had entered the Uzbek market.

A day earlier, Azerbaijani Economy Minister Mikayil Jabbarov announced ABB’s planned entry into Uzbekistan’s banking market at the fourth Uzbekistan-Azerbaijan Regions Forum in Tashkent.

According to Jabbarov, an agreement with Azerbaijan’s largest bank and the largest bank in the South Caucasus envisaged a partnership and the acquisition of a stake in Davr Bank.

Jabbarov also highlighted support from the Uzbek president, the regulator, the Central Bank and the government in creating conditions for the project’s implementation.

ABB’s entry into the Uzbek market coincided with the resumption of trading in Davr Bank shares. On 27 August, the Republican Stock Exchange “Toshkent” announced that trading in the bank’s securities would resume after a 5.5-year absence from the exchange’s quotation list.

The shares, identified by code UZ7050240009, were included in the listing under the ticker DRBK, with trading starting on 28 August.

Plans for ABB to acquire a controlling stake in Davr Bank became known in May. The Azerbaijani state-owned bank planned to acquire 51% of the Uzbek bank in the second half of the year and begin operating in the country. The transaction was initially valued at US$100 million.

In June, Davr Bank shareholders approved the continuation of negotiations with ABB over the possible sale of a 51% stake.

Davr Bank was registered in Uzbekistan in September 2001. According to the Unified State Register of Enterprises and Organizations, its founders are several individuals.

The bank’s largest shareholder is Supervisory Board Chairman Lutfulla Ubayev, who owns 46.9% of the shares. Another 13.5% is held by Mahfuza Ubaeva.

Davr Bank is headed by Abdumajid Samadov.