BLOM Bank SAL has recently announced via a statement the signing of a definitive agreement with Arab Banking Corporation B.S.C. (Bank ABC) for the sale of its 99.4% stake in its Egyptian subsidiary BLOM Bank Egypt to Bank ABC, pending approval from concerned regulatory authorities such as the Central Bank of Egypt and the Central Bank of Lebanon (BDL), only to name a few. The statement also uncovered that Bank ABC would be offering a cash consideration of some EGP 6,700 million (c. $427 million) for 100% of BLOM Bank Egypt, with BLOM Bank SAL tendering its shares into a compulsory tender offer to be launched by Bank ABC after securing mandatory regulatory approvals. BLOM Bank also revealed it expects the completion of the transaction during H1-2021. The Chairman and General Manager of BLOM Bank Mr. Saad Azhari revealed that the transaction will ensure the bank’s adherence to BDL’s latest regulations which calls Lebanese banks to increase their equity by 20%. On the other hand, Dr. Khaled Kawan, Group CEO of Bank ABC, unveiled that BLOM Bank Egypt’s acquisition lies within the bank’s long-term strategy to expand its operations in an inorganic manner, gaining a foothold for future growth in one of the most promising markets regionally. Finally, the statement revealed that CI Capital acted as advisors for BLOM Bank, with Baker McKenzie serving as legal counsel, while on the other hand Bank ABC was advised by HSBC, whilst the legal advisors were Freshfields Bruckhaus Deringer and Zulficar & Partners.

It is worth noting that BLOM Bank Egypt S.A.E. is a commercial bank with a paid up capital of EGP 2 billion ($127.34 million) with a network of 41 branches spread throughout Egypt. Arab Banking Corporation B.S.C. (also known as Bank ABC) is an international bank headquartered in Bahrain with a paid up capital of $3.11 billion. Bank ABC was named as the “Bank of the year 2020” in Bahrain by the Banker magazine.