Case | HBS Case Collection | May 2008 (Revised June 2009)

Finansbank 2006

by C. Fritz Foley and Linnea Meyer

Abstract

How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a merger. Finansbank AŞ is a bank headquartered in Turkey with additional operations in Holland, Switzerland, Russia, Romania, and Ukraine. It was founded by Hüsnü Özyeğin in 1987 and in April 2006, the National Bank of Greece (NBG) offered to buy part of the bank. Students can consider which factors contributed to Finansbank's growth and success. In order to then assess the terms of NBG's offer, they can evaluate given valuations of the bank and analyze why the proposed deal is structured so the Özyeğin retains a stake and buys back the non-Turkish operations. Students can also consider the offer from the perspective of minority shareholders.

Keywords: Leveraged Buyouts; Mergers and Acquisitions; Restructuring; Capital Budgeting; Agreements and Arrangements; Valuation; Turkey; Greece;

Citation:

Foley, C. Fritz, and Linnea Meyer. "Finansbank 2006." Harvard Business School Case 208-108, May 2008. (Revised June 2009.)