Emirates NBD, MENA banks eye Barclays Egypt sale
Barclays is divesting its Africa unit as part of a plan to simplify its structure and seek higher shareholder returns. (AFP/Carl Court)
Click here to add Atlas Mara as an alert
Disable alert for Atlas Mara,
Click here to add Attijariwafa Bank as an alert
Disable alert for Attijariwafa Bank,
Click here to add Barclays as an alert
Disable alert for Barclays,
Click here to add Barclays Egypt as an alert
Disable alert for Barclays Egypt,
Click here to add BNP Paribas as an alert
Disable alert for BNP Paribas,
Click here to add BNP Paribas Egypt as an alert
Disable alert for BNP Paribas Egypt,
Click here to add Bob Diamond as an alert
Disable alert for Bob Diamond,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Emirates NBD as an alert
Disable alert for Emirates NBD,
Click here to add HC Securities as an alert
Disable alert for HC Securities,
Click here to add Ismail Douiri as an alert
Disable alert for Ismail Douiri,
Click here to add Jes Staley as an alert
Disable alert for Jes Staley,
Click here to add New York as an alert
Disable alert for New York,
Click here to add Perella Weinberg Partners as an alert
Disable alert for Perella Weinberg Partners,
Click here to add Reuters as an alert
Disable alert for Reuters,
Click here to add UBS as an alert
Disable alert for UBS
Barclays has begun a formal process to sell its Egyptian unit, with at least two banks from the Middle East and North Africa region expressing interest in the business, sources familiar with the matter said on Tuesday.
The UK-based lender is offloading its Africa unit as part of a plan by Chief Executive Jes Staley to simplify its structure and seek higher shareholder returns, although attempts to sell all the assets together have come up against difficulties including the disparate nature of the business.
Banks have now been invited to submit bids for the Egypt business, which are due at the end of August, according to two of the sources. Sources have previously said Barclays Egypt's equity value was around $400 million.
Dubai-based Emirates NBD, which bought BNP Paribas' Egyptian unit in 2013, is one of the interested parties and has mandated Perella Weinberg Partners to advise it, according to three sources aware of the matter.
The New York-based investment firm also worked on the BNP Paribas Egypt deal with Emirates NBD, which on Monday reported a 16 percent jump in second-quarter net profit.
The United Arab Emirates' largest bank by assets was also advised by local brokerage HC Securities and Investment on the BNP deal, and the Egyptian firm was believed to be once again helping Emirates NBD, according to one of the sources.
Attijariwafa Bank, Morocco's largest bank by assets, is planning to bid too, and has chosen UBS as its adviser, two of the sources said.
The Moroccan lender's general manager, Ismail Douiri, told Reuters in March it was interested in Barclays Egypt, having been keen to expand into the North African country for several years. It bid for BNP Paribas' Egyptian business before losing out to Emirates NBD.
Barclays and Emirates NBD declined to comment. Attijariwafa didn't immediately respond to a request for comment. The sources spoke on condition of anonymity as the information isn't public.
Other bidders could emerge before the end-August deadline. For example, Atlas Mara, the investment firm run by former Barclays CEO Bob Diamond, has said it would be interested in buying all the bank's African assets.
However, the sources indicated Attijariwafa and Emirates NBD were believed to be the only ones to have got as far as appointing investment banks to advise them.
Barclays has 56 branches and serves around 127,000 customers in Egypt, where it first established a foothold in 1864, according to the bank's website.
By David French and Tom Arnold, Editing by Mark Potter
Reuters content reproduced with permission
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?