UAE's First Abu Dhabi Bank signs deal to acquire 100% of Bank Audi Egypt's share capital

FAB Egypt to be one of Egypt's largest banks with assets of over $8.1bln

Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

First Abu Dhabi Bank/ Handout via Thomson Reuters Zawya

Bank Audi sal (Bank Audi) has signed a definitive agreement with First Abu Dhabi Bank (FAB) for the acquisition by FAB of 100 percent of the share capital of its Egyptian subsidiary, Bank Audi sae.

The transaction, expected to be completed within the next few months, is subject to regulatory approvals, the banks said in a joint statement Wednesday.

The statement didn’t disclose the value of the transaction.

This agreement follows the completion of an in-depth due diligence exercise conducted by FAB on Bank Audi sae (Egypt) after obtaining the preliminary approval of the Central Bank of Egypt.

Post-acquisition, FAB Egypt to be one of the largest foreign banks in Egypt by total assets with pro-forma total assets of more than 120 billion Egyptian pounds ($8.1 billion).

This is FAB’s first international acquisition in line with targeted growth strategy in high potential markets in MENA. For Bank Audi sal (Lebanon), this is an opportunity to reap the fruit of its successful investment in Egypt, with the sale proceeds contributing to the enhancement of Bank Audi’s capitalisation and financial resilience, it said.

André Sayegh, Group Chief Executive Officer, FAB, said: “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, stated: “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.”

As at end-September 2020, Bank Audi sae (Egypt) had total assets of 83.2 billion pounds ($5.3 billion) and shareholders' equity of 7.6 billion pounds ($479 million). It has network of 53 branches, while FAB, with a presence dating back to 1975, has 17 branches.

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.

EFG Hermes acted as sole financial adviser, while Dechert LLP and Zulficar and Partners acted as legal adviser to Bank Audi on the transaction. JPMorgan rendered a Fairness Opinion to Bank Audi, while Broadgate Advisors offered advisory services to Bank Audi in connection with the transaction.

(Writing by Brinda Darasha; editing by Daniel Luiz)

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