UAE’s FAB acquires 100% of Bank Audi Egypt’s share capital

By Ashika Rajan, Trainee Reporter
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The UAE’s largest bank, First Abu Dhabi Bank (FAB) has begun the process of transferring 100 percent of the share capital of Bank Audi sae (Egypt), the Egyptian subsidiary of Lebanon-based Bank Audi.

FAB will begin integrating the assets and operations of Bank Audi sae (Egypt) and FAB Egypt once the share transfer is complete, with the integration process scheduled to be completed in 2022.

FAB will become one of Egypt’s largest foreign banks by assets after the share transfer is completed, with pro-forma total assets of more than Electronic Government Procurement  (EGP) $8.5 billion as of December 31, 2020.

Ms. Hana Al Rostamani, Group Chief Executive Officer FAB pointed out that “this acquisition represents an important strategic milestone for FAB’s international ambitions, accelerating FAB Group’s expansion in a high-potential market. It will significantly increase the size, scale, and experience of FAB Egypt, adding greater depth and reach to the value we offer our customers both locally and globally.”

The developed retail and corporate banking propositions of Bank Audi sae (Egypt) and its extensive branch network complement FAB’s long-standing operations in Egypt, which date back to 1975.

“FAB has a long history in Egypt, and we stand fully committed to supporting our new and existing customers across a full range of retail and corporate banking needs, as well as serving as a bridge for trade and investment flows across the Middle East and North Africa (MENA) region and beyond, supporting all our stakeholders in unlocking new possibilities for growth.” Ms. Al Rostamani added.

Following an independent due diligence and selection process, FAB Egypt’s Chief Executive Officer, Mr. Mohamed Abbas Fayed, has been appointed Country Chief Executive Officer of the merged organization.

Financial advisers to FAB were First Abu Dhabi Bank and UBS AG London Branch, while UK-based Freshfields Bruckhaus Deringer LLP and Matouk Bassiouny & Hennawy acted as legal advisers to FAB on the transaction.

Egyptian EFG Hermes served as Bank Audi’s sole financial advisor, while American Dechert LLP and Zulficar and Partners acted as the transaction’s legal counsel.

Bank Audi received a Fairness Opinion from UAE’s JPMorgan, while Broadgate Advisors offered advisory services to Bank Audi in connection with the transaction.

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