The UAE’s Abu Dhabi Commercial Bank (ADCB) announced that it has been exempted from making a Mandatory Tender Offer (MTO) to the minority shareholders of Union National Bank (UNB) Egypt.
UNB-Egypt, which was established in 2006, is supported by the Abu Dhabi-based UNB Group, according to its website.
Egypt’s Financial Regulatory Authority (FRA) approved the MTO exemption application on September 18, according to a statement by ADCB.
Abu Dhabi’s second largest bank in terms of market capitalization had applied to the FRA for the MTO exemption following its merger with UNB and the Egyptian Central Bank’s approval of ADCB’s acquisition of shares in UNB-Egypt.
The three-way merger of ADCB, UNB and Al Hilal Bank, all part-owned by the Abu Dhabi government, was agreed in late January 2019 after the initial announcement in the previous year. The Abu Dhabi government retains a 60.2 percent stake in the new combined entity.
ADCB had announced earlier in September that it will sell the majority of its banking portfolio in India to DCB Bank.
ADCB reported a 10.49 percent drop in Q2 2019 net profit to 1.45 billion UAE dirhams ($394,77 million) down from 1.62 billion dirhams in Q2 2018.
(Writing by Gerard Aoun, editing by Anoop Menon)
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© ZAWYA 2019