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26 January 2020
INVESTMENT

First Abu Bank in talks to acquire Bank Audi-Egypt

Bank Audi operates around 50 branches in Egypt with total assets of $4.4 billion at the end of September 2019

The lender has formed a working group to assess potential acquisition/Shutterstock

by Kudakwashe Muzoriwa

First Abu Dhabi Bank (FAB) has entered exclusive discussions with Lebanon’s Bank Audi to acquire the lender's Egyptian unit.

Earlier this month, Tamer Ghazaleh, Bank Audi’s Chief Financial Officer, said that the bank is considering selling its Egyptian unit after receiving interest from other banks, indicating a possible strategy rethink as Lebanon grapples with a financial crisis.

FAB stated that currently no valuations have been announced and there is no certainty that these discussions will result in a transaction, which is subject to regulatory approvals.

The lender has formed a working group to assess potential acquisition.

Al Mal reported that Bank Audi appointed Egypt's EFG Hermes as a financial advisor and Zulficar & Partners Law Firm as legal advisor in a deal to sell its Egyptian unit.

Bank Audi said that talks with the UAE’s largest bank were still at an early stage, with no definitive agreement reached, adding that it had no current intention to engage in talks to sell any other overseas subsidiary.

Since Lebanon's crisis began, Bank Audi has received several calls from investment bankers trying to support us if we want to sell foreign assets as a way of increasing the capitalisation and liquidity of the Lebanese operation, said Ghazaleh.


RELATED STORIES: First Abu Dhabi Bank Bank Audi

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