With M&A deals mounting in Turkey's promising insurance segment, Yapi Kredi announced in June that it would look to sell YKS. However, the newswire reports that, according to unnamed banking sources, the bank is finding bidders thin on the ground due to the TRY1.6bn (EUR687m) valuation of the unit.
The sources point out that the pensions unit is the real story in the sale, and that the bank is considering restructuring the company to push a sale through. "The fact that pension unit is included in the company is making it a lot harder for Yapi Kredi to sell it," said one banking and insurance analyst.
Turkey's fast-growing and low-penetrated insurance market has become increasingly attractive to foreign investors. The latest deal in the sector saw US insurer Cigna Corp sign a deal in July to buy a 51% stake in Finans Emeklilik for EUR85m.
Read the full story on www.balkans.com.
TURKEY: Yapi Kredi plans to sell pension unit separately