Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

FAB Acquires Bank Audi Egypt


Wed 20 Jan 2021 | 06:23 PM
Taarek Refaat

First Abu Dhabi Bank (FAB)  announced on Wednesday the signing of the final agreement with Bank Audi to complete the acquisition of 100% of the Bank’s capital.

According to a press release from the Emirates Bank, this acquisition agreement followed the completion of an in-depth data-checking and due diligence process that FAB conducted on Bank Audi Egypt business in accordance with the applicable legislation, after obtaining the initial approval required from the Central Bank of Egypt (CBE).

It is expected to complete the acquisition process within the next few months, after meeting several common conditions for such a process. These include obtaining the final approvals from the bank, central banks, and the necessary regulatory and supervisory bodies in the United Arab Emirates (UAE) and Egypt.

The acquisition will significantly increase the volume and scope of First Abu Dhabi Bank’s activity in Egypt, and will make it one of the largest foreign banks operating in the republic in terms of assets, with its value exceeding EGP 120 billion ($ 8.1 billion) after consolidation. The proceeds from the sale will contribute to enhancing Bank Audi Group's solvency and financial resilience.

Bank Audi Egypt had total assets of EGP 83.2 billion Egyptian (equivalent to $ 5.3 billion) by the end of September 2020, while total shareholders' equity reached EGP 7.6 billion (equivalent to $479 million).

The distinguished banking services provided by Bank Audi Egypt to inpiduals and companies, in addition to its spread network of 53 branches, will complement the operations of FAB in Egypt through its 17 branches and its distinguished presence in the market since 1975.

First Abu Dhabi Bank and UBS AG, the London branch worked as financial advisors for the acquisition, while Freshfields Brockhausdraininger LLB, Maatouk Bassiouni and Hinnawi acted as legal advisors to Abu Dhabi Bank in this deal.

The financial group “Hermes” stood as the sole financial advisor to Bank Audi in this acquisition process, while “Decert LLP” and “Zulfiqar and Partners” acted as legal advisors.

JP Morgan provided an opinion on the fairness of the price of this operation to Bank Audi, while Broadlight Advisors provided continuous advisory services for this process.