The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Time for GE to find buyer for Garanti?

It is a perfect time for GE to sell its stake in Garanti, but finding the right buyer will not be easy.

The investment bank that won the mandate to sell GE Capital’s 20.85% stake in Turkish bank Garanti will be working hard for its fees (it is rumoured to be JPMorgan).

Garanti is one of the best-managed financial institutions in the emerging markets. Like other Turkish banks it has weathered the global financial crisis fairly well. As Turkey secures its place as one of the most favoured investment destinations in the region, Garanti is set to benefit.

For GE Capital, now is a better time to sell than any other since the collapse of Lehman Brothers. Garanti’s earnings performance this year is unlikely to beat last year’s, when falling local interest rates boosted gains from Turkish treasury bill portfolios. As interest rates are likely to rise later this year, Garanti will probably earn less and pay smaller dividends, and its share price could be affected.

In early 2010 Garanti’s stock price came back to the peak it reached at the end of 2007 and far above its level in 2005, when GE gained joint control of the bank. With the 20.85% stake worth about $3.3 billion, GE could get double the $1.6 billion it paid for a 25.5%

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree