Bank Audi sal to sell Egyptian subsidiary to First Abu Dhabi Bank
Lebanon-based Bank Audi sal has agreed to divest its Egyptian subsidiary – Bank Audi sae to UAE-based First Abu Dhabi Bank (FAB) for an undisclosed price.
Bank Audi sae was launched following the acquisition of Cairo Far East Bank sae by Bank Audi sal in 2006. The Egyptian bank has 53 branches.
Its Lebanese parent company said that it will use the proceeds of the sale for improving its capitalization and financial resilience.
Samir Hanna – Chairman and Group CEO of Bank Audi said: “This transaction represents the best outcome for all our constituencies, in particular our customers and our employees in Egypt based upon the challenges we have been facing in Lebanon for the past 16 months.
“This transaction also represents a strong vote of confidence in the effectiveness of the Group’s governance and business model across the region.”
The deal has been signed after the completion of a due diligence exercise carried out by First Abu Dhabi Bank on Bank Audi sae upon getting the preliminary approval of the Central Bank of Egypt.
As of end-September 2020, Bank Audi sae had total assets of EGP 83.2 billion ($5.3 billion).
Post-acquisition, First Abu Dhabi Bank is expected to become one of the largest foreign banks in Egypt in terms of assets, which are estimated to be over EGP 120 billion ($8.1 billion) due to the considerable increase in the size and scale of its operations in the transcontinental country.
First Abu Dhabi Bank has 17 branches in Egypt where it has been operating since 1975.
André Sayegh – Group Chief Executive Officer of First Abu Dhabi Bank 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.
“FAB is committed to supporting customers in Egypt across a full range of retail and corporate banking needs, as well as serving as bridge for trade and investment flows across the MENA region and beyond.”
The deal, which is subject to regulatory approvals in the UAE and Egypt and other customary conditions, is likely to be closed within the next few months.