Bank Audi has come to the agreement to sell all of its stake in Egypt to First Abu Dhabi Bank (FAB) a few days after BLOM Bank sold its operations, also in Egypt, to a Bahraini bank.
According to a statement by both lenders, “Bank Audi sal and First Abu Dhabi Bank (FAB) have announced the signing today of a definitive agreement for the acquisition by FAB of 100 percent of the share capital of Bank Audi’s subsidiary in Egypt.”
The statement added that this agreement followed the completion of an in-depth and due diligence exercise conducted by FAB on Bank Audi SAL’s Egypt branch after obtaining the required approval of the Central Bank of Egypt.
The transaction is expected to be completed within the next few months, following the satisfaction of customary conditions, including the receipt of regulatory approvals in the UAE and Egypt.
“Any further updates with regards to the completion of the transaction shall be provided in due course,” the statement said, without disclosing the value of the acquisition.
Only a few days ago, BLOM bank agreed to sell its 99.4 percent stake in its subsidiary in Egypt to Bahrain’s Bank ABC for $480 million.
André Sayegh, group chief executive officer of First Abu Dhabi Bank (FAB), said: “FAB has a long history in Egypt, having opened its first branch in the country more than 45 years ago.”
“FAB’s first international acquisition accelerates the group’s expansion in a high potential market, with the addition of Bank Audi Egypt’s operations offering the scale, expertise, and financial strength to support our growth journey and sustainable returns,” Sayegh added.
As for Bank Audi, its chairman and group CEO, Samir Hanna, stated that this transaction represents the best outcome for all parties involved, in particular Bank Audi’s customers and employees in Egypt, due to the challenges the financial services company has been facing in Lebanon.
This acquisition will affect the size and scale of FAB’s operations in Egypt, making it one of the country’s largest foreign banks by assets, with total assets of more than EGP 120 billion ($8.1 billion).
The proceeds of the sale will also contribute to the enhancement of Bank Audi Group’s capitalization and financial resilience.