UAE’s largest bank First Abu Dhabi Bank (FAB) has signed a definitive agreement with Lebanon-based financial services company, Bank Audi sal (Bank Audi) to acquire 100 percent share capital of Bank Audi’s Egyptian wing, Bank Audi sae.
This agreement follows the completion of an in-depth due diligence exercise conducted by FAB on Bank Audi sae after securing the preliminary approval of the Central Bank of Egypt.
It is estimated that the transaction will be concluded within the next few months, in line with customary conditions, including the receipt of regulatory approvals in the UAE and Egypt. More updates related to the completion of the transaction will be provided in a timely manner.
“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 a bridge for trade and investment flows across the MENA region and beyond.”
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 acquisition would dramatically increase the size and scale of FAB’s operations in Egypt, making it one of the largest foreign banks in the region, with Pro-forma assets totaling more than $8.1 billion (EGP 120 billion). The proceeds of the sale will contribute to improving the capitalization and financial stability of Bank Audi Group.
In the process, First Abu Dhabi Bank and UBS AG (London Branch) acted as financial advisers, while Freshfields Bruckhaus Deringer LLP and Matouk Bassiouny & Hennawy acted as legal advisers to FAB on the transaction.