Manama: Arab Banking Corporation (B.S.C.) (Bank ABC) has said entered into an agreement with Blom Bank S.A.L. (Blom Bank Lebanon) to acquire its 99.4% stake of Blom Bank Egypt S.A.E. (Blom Bank Egypt).
The proposed cash consideration to be offered by Bank ABC for 100% of Blom Bank Egypt under the acquisition is EGP 6,700 million.
Completion of the acquisition is subject to a number of conditions and approvals including regulatory approvals in Bahrain, Egypt and Lebanon. The acquisition is expected to complete in Q2 2021, and a further announcement will be made at that time.
“The acquisition of Blom Bank Egypt is a unique opportunity for Bank ABC to fulfil its longstanding strategic commitment to inorganically expand its core business, giving us a significantly enhanced platform for future growth, in one of the most attractive markets in the region. We have an active relationship with our regulators and will be working to secure their approvals to complete the deal as swiftly as possible. We will then look forward to working with our new Blom Bank Egypt team to combine Bank ABC Egypt and Blom Bank Egypt thereby creating a new powerhouse in the Egyptian banking sector. We also thank the management teams of Blom Bank Lebanon, Blom Bank Egypt and their advisors for the seamless execution process that has led to this agreement,” Dr Khaled Kawan, Group CEO of Bank ABC said while commenting on the transaction.
“This transaction demonstrates our continuous commitment to our stakeholders and dedication to our strategy. It will allow Blom Bank Lebanon to comply with the latest regulations issued by the Central Bank of Lebanon, which stipulate that all Lebanese banks must increase their equity by 20%. I would like to take this opportunity to thank our team in Blom Bank Egypt for their dedication and perseverance that have made our operation in Egypt successful. I would also like to thank the management and transaction team at Bank ABC for their cooperation and professionalism during the entire transaction process as well as the CI Capital Investment Banking and Baker McKenzie teams for their commitment and dynamism,” Saad Azhari, Chairman and General Manager of Blom Bank Lebanon, said.
