French lender BNP Paribas SA (EPA:BNP) has entered into an agreement to sell its entire 95.2% interest in its Egyptian unit to Dubai-based bank Emirates NBD PJSC (DFM:ENBD), the parties announced today.
In addition, Emirates NBD will acquire the rest of the shares in BNP Paribas Egypt SAE from minority shareholders at the same price, paying a total of about USD500m (EUR377.9m) for the entire business. The figure represents a multiple of 1.6 times the unit’s book value as of September 2012.
The transaction is pending clearance from the Central Bank of Egypt and certain local and UAE regulators. It is seen to be finalised by the end of next year’s first quarter. Through the acquisition, Emirates NBD would enter the Egyptian market as part of its plan to boost presence in retail and corporate banking outside of the UAE.
The Cairo-based bank has a network of 69 branches across the country, some 1,450 employees and about 200,000 retail and 3,000 corporate customers. Last year, it registered net earnings of EGP222m (USD36m/EUR27m) on revenues of EGP731m.
BNP Paribas Corporate Finance and Allen & Overy LLP are consulting the vendor, while Perella Weinberg Partners, HC Securities and Investment, Freshfields Bruckhaus Deringer LLP, Matouk Bassiouny as well as Deloitte and McKinsey & Company Inc are advising the buyer.