for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Banks

Local shares in Kazakh bank Alliance plunge 53 pct

ALMATY, March 12 (Reuters) - Shares in Kazakhstan's No.4 bank Alliance ALLBq.LASBN.KZ plunged 52 percent on the Kazakh Stock Exchange on Thursday, prompting the bourse to suspend further trading.

The movement was not reflected in the price of Alliance global depository receipts traded on the London Stock Exchange. According to the Kazakh Stock Exchange data, the share price move was caused by a deal worth $1,600.

Alliance’s majority shareholder SAFC offered the government last month a 76 percent stake in the bank for less than $1 as SAFC itself would not be able to maintain its long-term capitalisation and stability.

The government has said it would close the deal only after Alliance’s creditors waive their rights to demand early debt repayment due to the change of control over the bank.

Some analysts have suggested Alliance may seek to restructure its foreign debt. The bank has declined to comment on the issue. (Writing by Olzhas Auyezov; Editing by Jon Loades-Carter)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up