Commercial Bank, which holds 75% shares in mid-sized Alternatifbank (ABank), yesterday said it has received approval from Qatari regulatory authorities enabling Anadolu Endüstri Holding (AEH) to exercise put option, following which the Turkish lender will become its wholly-owned subsidiary.
“This approval completes all of the necessary authorisations for the exercise of put option,” a Commercial Bank spokesman said.
A put option gives the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.
Expecting the subsequent share transfer to be made in the second half of December 2016, he said “on completion of the share transfer, ABank will become a 100% subsidiary of the Commercial Bank.” 
In July this year, the Qatari lender had informed the Qatar Stock Exchange that it received a notice from AEH to exercise the put option with respect to 192.5mn or 25% of registered shares held by AEH in ABank under the shareholders’ agreement signed with Commercial Bank on July 18, 2013.
Share sale value has been calculated at $222.5mn as of July 18, 2016 based on the base price method specified in the shareholders’ agreement.
In July 2013, Commercial Bank completed its acquisition of a 70.84% shareholding in ABank, which focuses on small and mid-size enterprises, and then purchased another 4.16% stake through a mandatory tender offer from the public.