First Abu Dhabi Bank said that it has resumed exclusive talks to acquire Lebanese Bank Audi activities in Egypt.
“These negotiations are subject to the requirements of due diligence examination, agreement on final transactions and the required regulatory approvals,” the bank added in a disclosure statement to the Abu Dhabi Stock Exchange.
The UAE's largest lender suspended the acquisition talks being held last May with Bank Audi officials due to the difficult market conditions caused by the pandemic, but Reuters recently quoted a source saying that the bank intends to resume talks about buying the Lebanese Bank Audi in Egypt.
Mohamed Bedeir, CEO and managing director of Bank Audi, said that exclusive negotiations have been resumed between Bank Audi Lebanon and First Abu Dhabi Bank UAE on the sale of its wholly owned subsidiary in Egypt, Bank Audi Egypt, to First Abu Dhabi Bank UAE.
He added that the two banks had discussions early in the year and made progress on many points.
First Abu Dhabi Bank is the UAE’s largest lender.
The current discussions are subject to confirmation of examination, signing of contracts and obtaining approval from the authorities, including the approval of the Central Bank of Egypt.
Bank Audi Group operates in a number of markets, led by Egypt, Turkey, Switzerland, France, Jordan, Iraq, Qatar and the UAE, and employs about 6,200 people; 1,431 in the Egyptian unit.
A banking source indicated that the group may have to exit from other markets besides Egypt to comply with the requirements of the Lebanese central bank, which obliges banks there to make an increase in their capital by 20 percent before the end of next June.
Bank Audi Egypt is considered one of the most important markets for the Lebanese group, as it acquired 16.4 percent of the group’s profits at the end of last June, while its assets constitute about 9.2 percent of the group’s entire assets.
Bank Audi joined the Egyptian market in March 2006.
Copyright: Arab News © 2022 All rights reserved.