Russia’s Sberbank has signed a definite agreement to divest its full 99.85% stake in Turkey’s Denizbank to Dubai-based lender Emirates NBD for nearly $3.2bn.

Under the terms of the agreement, Emirates NBD will pay TRY14.61bn ($3bn) as consideration under a locked box mechanism according to the consolidated equity capital of Denizbank as on 31 October 2017.

Furthermore, Emirates NBD will pay additional interest on the consideration for the period from 31 October 2017 to the closing date of the deal.

During this period, all profits will be allocated to Emirates NBD’s account. Emirates NBD will also acquire Denizbank’s subordinated debt which was earlier provided by Sberbank.

Following the completion of the deal, Sberbank will cease to be a stakeholder in Denizbank.

Subject to regulatory approvals in Turkey, Russia, the UAE and other relevant jurisdictions, the transaction is expected to be completed in this year.

Sberbank CEO Herman Gref said: “Denizbank is one of the most attractive assets in the Turkish banking sector. We highly value the management team and the results achieved during our ownership of Denizbank since 2012.

“The decision to sell Denizbank is prompted by a change in Sberbank Group’s international strategy and will allow us to focus further on development of ecosystem of Sberbank.”

With assets more than TRY169.4bn, Denizbank is one of the largest private banks in Turkey.

The bank has 708 branches in Turkey and 43 additional operating units in other countries. It has more than 11.8 million customers.