First Heartland Securities, JSC the investment division of the financial holding company of the autonomous educational organizations Nazarbayev University, Nazarbayev Intellectual Schools and the Nazarbayev Fund, announces the acquisition of 99.5% of Tsesnabank ordinary shares.
The transaction was executed under the Sale and Purchase Agreement and in accordance with the Framework Agreement approved by the Government and the National Bank of the Republic of Kazakhstan. In order to fulfill its obligations, First Heartland Securities JSC (hereinafter referred to as FHS), after fulfilling of preliminary conditions, will recapitalize the Bank in the amount of 70 billion tenge.
In total, the measures taken by the National Bank of Kazakhstan, the Government and the new shareholder will contribute to the bank’s recovery and the resumption of the process of crediting the real sector when the bank fulfills all the necessary prudential standards and requirements of the National Bank of Kazakhstan. In addition, these measures will allow Tsesnabank to continue to fulfill all obligations to its clients and to ensure the reliability and safety of depositors' funds.
Tsesnabank is one of the leaders of the Kazakhstani financial market in terms of crediting to the real economy, including small and medium-sized businesses and individual entrepreneurships, - said Mr. Erke Nurkenov, Chairman of the Board of First Heartland Securities JSC. FHS will continue to develop Tsesnabank and strengthen its position in the SME segment and work with individuals, primarily focusing on improving the quality and availability of services, - Mr. Nurkenov added.
Now FHS will be able to diversify the banking business and, in addition to investment, corporate and private banking, to cover the SME, retail and insurance segment.