FAB Resumes Talks to Acquire Bank Audi Egypt

First Abu Dhabi Bank (FAB) announced on Wednesday the resumption of talks to acquire Bank Audi Egypt.

FAB stated in a statement to the Abu Dhabi stock exchange (ADX) that the negotiations are subject to the requirements of due diligence, agreement on final transactions, and the required regulatory approvals.

FAB indicated that the potential acquisition step is consistent with the bank’s strategy and the expansion plans it adopts for the long term in the target markets.

In early September, the bank refused to comment on the speculation and rumors circulating in the market regarding the resumption of talks to take over Bank Audi Egypt, based on the policy and strategy followed in the bank.

First Abu Dhabi Bank suspended the acquisition talks last May with Bank Audi officials, due to the difficult market conditions caused by the COVID-19 pandemic.

Earlier, Reuters quoted an informed source as saying that the bank intends to resume talks regarding the purchase the Lebanese Bank Audi in Egypt.

A familiar source said then that the deal was worth around $700 million.

On Monday, the bank revealed that its profits fell by 22% in the first three quarters of 2020, year-on-year. Its profits reached 7.3 billion dirhams at the end of September, compared to 9.4 billion dirhams, a year earlier.

On the other hand, the group's net profits reached Dh 2.5 billion in Q3 of 2020, compared to Dh 3.1 billion.

The bank’s shares closed its trading on the Dubai Financial Market down 0.35% at Dh 11.46, after trading 11.02 million shares, valued at Dh 127.67 million.