- Transaction expected to be completed within the next few months, subject to regulatory approvals.
- FAB’s first international acquisition in line with targeted growth strategy in high potential markets in MENA.
- This is a strategic opportunity for Bank Audi sal (Lebanon) 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.
- Post-acquisition, FAB Egypt to be one of the largest foreign banks in Egypt by total assets.
Abu Dhabi, UAE and Beirut, Lebanon; January 20, 2021:Bank Audi sal (Bank Audi) and First Abu Dhabi Bank (FAB) have announced the signing today of a definitive agreement for the acquisition by FAB of 100% of the share capital of Bank Audi sae, Bank Audi’s subsidiary in Egypt.
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. The transaction is expected to be completed within the next few months, following the satisfaction of customary conditions, including the receipt of regulatory approvals in the UAE and Egypt. Any further updates with regards to the completion of the transaction shall be provided in due course.
André Sayegh, Group Chief Executive Officer, FAB, said: “FAB has a long history in Egypt, having opened its first branch in the country more than 45 years ago. 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.” He
added: “This transaction also represents a strong vote of confidence in the effectiveness of the Group’s governance and business model across the region.”
This acquisition will significantly increase the size and scale of FAB’s operations in Egypt, making it one of the country’s largest foreign banks by assets with pro-forma total assets of more than EGP 120 billion (USD 8.1 billion). The proceeds of the sale will contribute to the enhancement of Bank Audi Group’s capitalisation and financial resilience.
As at end-September 2020, Bank Audi sae (Egypt) had total assets of EGP 83.2 billion (USD 5.3 billion) and shareholders’ equity of EGP 7.6 billion (USD 479 million). Its established Retail and Corporate Banking propositions, and network of 53 branches, complement FAB’s well-established operations in Egypt of 17 branches and a presence dating back to 1975.
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.
About First Abu Dhabi Bank (FAB)
FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s vision is to create value for its employees, customers, shareholders and communities to grow stronger through differentiation, agility and innovation. Headquartered in Abu Dhabi, the Bank’s international network spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a trusted adviser and regional partner to major institutions, emerging companies and individuals seeking to do business in the UAE, the MENA region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets. FAB continuously anticipates evolving requirements, develops innovative solutions and moves in tandem with customers to offer an extensive range of tailor-made products via its market-leading Corporate and Investment Banking (CIB) and Personal Banking Group (PBG) franchises. Aligned to the Abu Dhabi Economic Vision, inspired by global standards and guided by the expectations of stakeholders, FAB takes a leading role in fostering development and driving change towards a more sustainable future. FAB sees beyond traditional banking and embraces a challenger mindset. Its ambition is to contribute to social and human development which creates a dynamic, inclusive and tolerant society. With total assets of AED 955 billion (USD 260 billion) as of September-end 2020, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global Finance as the Safest Bank in the UAE and the Middle East, and the 32nd Safest Bank globally. The Banker’s Top 1000 World Banks 2020 list, measured by Tier 1 capital, ranked FAB as number one in the UAE, second in the Middle East and number 85 across the globe – in addition to ranking the bank number 109
by assets in the same list. FAB is also a regional sustainability leader, and a constituent of MSCI ESG Leaders and FTSE4 Good EM indices.
About Bank Audi
Bank Audi is a leading Lebanese banking group with a footprint in the MENAT region and Europe. The Bank offers universal financial products and services including Corporate Commercial, Retail and Personal, and Private Banking services, in addition to Capital Market activities and Factoring. At end-September 2020, Bank Audi’s consolidated assets reached USD 35.2 billion, principally driven by private customers’ deposits of USD 26.5 billion, with shareholders’ equity reaching USD 3 billion. Bank Audi’s shareholders’ base encompasses more than 1,500 holders of common shares and/or holders of Global Depositary Receipts (GDRs) representing common shares. Bank Audi’s shares and GDRs are listed on the Beirut Stock Exchange.
About EFG Hermes
With a current footprint spanning thirteen countries across four continents, EFG Hermes started in Egypt and has grown over 35 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track record and a team of more than 5,500 talented employees, we provide a wide spectrum of financial services that include Investment Banking, asset management, securities brokerage, research, and private equity to the entire MENA region. In 2015, EFG Hermes launched the NBFI Platform, EFG Hermes Finance, which overlooks activities in the non-banking finance field through EFG Hermes Corp Solutions, Tanmeyah Microfinance, valU, as well as lines of business in the payment solutions, mortgage, and insurance spaces. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into non-MENA markets, which has seen the firm establish a physical presence in Pakistan, Kenya, Bangladesh, Nigeria, Vietnam, the United Kingdom and the United States.
UBS AG London Branch
Learn more about us at www.efghermes.com and stay connected with us:
UBS AG London Branch is authorised and regulated by the Financial Market Supervisory Authority in Switzerland. It is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority in the United Kingdom. UBS AG London Branch is acting as financial adviser to FAB and no one else in connection with the transaction. In connection with such matters, UBS AG London Branch will not regard any other person as its client, nor will it be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the transaction, the contents of this announcement or any other matter referred to herein.