EGYPT – Arab Banking Corporation (ABC), an international bank with headquarters in Bahrain has signed a preliminary contract with BLOM Bank, a Lebanese bank, to close the acquisition of its Egypt operations, reports Daily News Egypt.
The banking authorities in both Egypt and Lebanon have been informed of these developments, in preparation for the final contract’s signing soon.
BLOM Bank had revealed that it had entered into exclusive discussions with the ABC to sell its 99.42% share of the total issued capital in BLOM Bank Egypt.
In a brief statement on its website, BLOM Bank said that the two parties will enter into negotiations in this field but did not confirm the imperative of reaching a final agreement.
The BLOM Bank announced last August that it was considering selling its stake in BLOM Bank Egypt, in light of the severe crisis that Lebanon is going through. It also emphasised the need for Lebanese banks to strengthen their headquarters.
The bank said that the completion of the sale will be subject to obtaining the approval of the Board of Directors at BLOM Bank and the final approval of the Central Bank of Egypt (CBE).
This will take place in a manner that guarantees that data confidentiality is preserved, and the rights of BLOM Bank Egypt customers and employees are also preserved in accordance with the relevant laws and regulations.
BLOM Bank affirmed its pride in its Egypt operations and its achievements, results, and growth over the past few years, as it is the BLOM BANK group’s largest asset outside Lebanon.
It is also a major tributary to its growth in the region and globally, which could not have been achieved without the efforts and expertise of its employees who are among the most important elements for the bank’s success and expansion in the Egyptian market.
According to Blom, most of the profits were made from their operations outside Lebanon, especially Egypt as 60.7 percent of the consolidated profits came from there.
Lebanon is struggling against a year full of consecutive political and financial crises that have paralyzed its banks, sunk the currency, and fuelled poverty and unemployment.
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