First Abu Dhabi Bank acquires 100% of Bank Audi Egypt’s share capital

Bank Audi and First Abu Dhabi Bank (FAB) have agreed for the latter to acquire 100 per cent of the share capital of Bank Audi sae, the former’s subsidiary in Egypt.

The acquisition was confirmed via a definitive agreement that followed a due diligence exercise conducted by FAB on Bank Audi Egypt after obtaining the preliminary approval of the Central Bank of Egypt. The transaction is expected to be concluded within the next few months, following the completion of customary conditions, including the receipt of regulatory approvals in the UAE and Egypt.

The proceeds will help strengthen Bank Audi group’s capitalisation and financial resilience. Meanwhile, it will scale FAB’s operations in Egypt, making it one of the country’s largest foreign banks by assets with pro forma total assets exceeding EGP120bn ($8.1bn).

André Sayegh, group chief executive officer, FAB, said: “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.”

“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,” added Samir Hanna, chairman and group CEO of Bank Audi.

“This transaction also represents a strong vote of confidence in the effectiveness of the group’s governance and business model across the region.”

As at end-September 2020, Bank Audi Egypt had total assets of EGP83.2bn ($5.3bn) and shareholders’ equity of EGP7.6bn ($479m).

First Abu Dhabi Bank and UBS AG (London Branch) acted as financial advisers, while Freshfields Bruckhaus Deringer and Matouk Bassiouny & Hennawy acted as legal advisers to FAB on the transaction. EFG Hermes acted as sole financial adviser, while Dechert and Zulficar and Partners acted as legal adviser to Bank Audi on the transaction.