Dubai government-owned Emirates NBD has entered into a discussion with the Lebanese Blom Bank management to make a bid to buy its unit in Egypt, as per banking sources.
According to reports, NBD has calculated the value of Blom Bank Egypt at about $413 to $444 million which is one-and-a-half times more than the complete ownership rights of the bank.
In this acquisition process, the UAE based bank is facing tight competition from the Bahraini Arab Banking Corporation, which has already commenced its auditing procedures on the deal in late September which is expected to be completed by mid-November.
The Governor of the Central Bank of Egypt, Tarek Amer has already stated that the Central Bank is committed to ensuring the rights of employees in the merged banks, including the workforce in the Lebanese Blom Bank in Egypt, as it is the bank’s responsibility.
Recently, several employees in the Blom Bank Egypt had submitted a request to secure their rights after the acquisition proceedings complete and Mr. Amer’s statement followed this.
Lebanese Blom Bank which is the major owner of Blom Bank Egypt has already requested the Central Bank of Egypt to get the required approvals for the merger.
The sale of the Egyptian subsidiary of the Lebanese Blom Group is following the order of the Lebanese government to boost 20 percent capital of every bank in the country by the end of February 2021.
The Lebanese Blom Bank needs about $240 million to raise its capital and this led the bank to declare the sale of its units in Egypt, which accounts for 46 percent of the group’s entire profit.
Blom Bank Egypt
Blom Bank Egypt is affiliated with the Blom Bank Group and commenced its operations in Egypt in 2005. It has about 41 branches and its paid-up capital is about $127 million.