ABC takes over BLOM Bank Egypt, triples Egyptian market share

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Arab Banking Corporation (Bank ABC) yesterday announced completing the acquisition of a 99.5% stake in BLOM Bank Egypt.

The acquisition significantly enhances ABC’s presence in the MENA region and deepens its roots in the Egyptian market.

The deal follows the successful completion of the Mandatory Tender Offer, share transfers and the release of the purchase price of $425m to BLOM Bank S.A.L. (BLOM Bank Lebanon) and the minority shareholders that tendered their shares in the MTO.

This represents a multiple of 1.37x based on BLOM Bank Egypt’s book value as of March 2021.

Bank ABC Egypt and BLOM Bank Egypt will continue operating as separate entities until the legal merger is completed.

The acquisition is subject to regulatory approval and is expected to conclude in Q1 2022.

The combined entity would more than triple Bank ABC’s market share and take its balance sheet to approximately EGP 60bn on a combined basis.

Customers are set to experience expanded service offerings, access to an additional 41 branches (more than doubling Bank ABC Egypt’s current branches), and a range of digital banking services, leveraging Bank ABC’s innovative digital capabilities such as its mobile-only digital bank ila, and its leading payments capabilities in its subsidiary, Arab Financial Services.

Bank ABC Group Chief Executive Officer, Dr Khaled Kawan, commented: “The acquisition of BLOM Bank Egypt is a landmark moment for Bank ABC.

 We have been searching for the right opportunity for many years— seeking an acquisition that further cements our reputation as MENA’s leading international bank.”

 Saad Azhari, Chairman and General Manager of BLOM Bank Lebanon, commented: “BLOM Bank Egypt has delivered strong returns for our Group, and we are confident that it will continue this legacy of success as a part of Bank ABC Group..”

HSBC Bank Middle East is acting as the sole financial advisor to Bank ABC, with Freshfields Bruckhaus Deringer and Zulficar & Partners acting as legal advisors.

CI Capital acted as the exclusive financial advisor to BLOM Bank Lebanon, while Baker McKenzie acted as legal counsel.