BNP’s asset management arm to sell clean energy unit CEP

BNP Paribas Investment Partners (BNPP IP), the asset management business of French BNP Paribas (EPA:BNP), will spin off BNP Paribas Clean Energy Partners (BNPP CEP) to become Glennmont Partners, the latter said on Monday.

The parent company, BNP Paribas Group, will remain an investor in the fund and will back the new entity via a distribution deal. Following the spin-off, BNPP CEP’s management staff will remain with Glennmont. Joost Bergsma will keep his position as chief executive.

Bergsma commented that as a separate entity, the focus of the business’ interests will be more closely aligned with the interests of its investors.

Glennmont is a EUR437m (USD582m) fund investing in renewable power projects including biomass, wind, solar and hydro power plants. The transaction is pending relevant regulatory authorisations.

BNP Paribas to sell Egyptian arm to Dubai-based Emirates NBD

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.