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ABK concludes deal with Piraeus Bank of Egypt
Kuwait, Cairo,
November 10, 2015: Al Ahli Bank of Kuwait K.S.C. (‘ABK’) announced today that
it has closed the deal with Piraeus Bank SA (‘PB’) to acquire 98.5% of Piraeus
Bank Egypt (PBE) with the official share transfer taking place on November 10,
2015.
This marks the completion of the transaction,
which was announced by ABK and Piraeus Bank in May 2015. The total
consideration is equivalent to US$150 million for PB’s stake, which represents
a multiple to the stated tangible book value of PBE as of 31 March, 2015 of
ca.1.5x. The new ABK subsidiary in Egypt will be rebranded ABK Egypt subject to
name change approval by the official authorities, and the new identity will be
rolled-out over the entire 39 branch network in the first half of 2016.
Mr. Talal Mohammed Reda Behbehani, Chairman of
ABK, said: “We are very proud to formally welcome PBE and its employees and
customers into the ABK family. ABK is firmly committed to investing in its
growth, and Egypt is a core market for us, building on the long standing
business relationship that already exists between our two countries. We look
forward to developing and growing our business in the Egyptian market. I’d like
to thank all the concerned authorities in Kuwait and Egypt who have helped us
to complete the deal in a very good time frame.
Mr. Michel Accad, Chief Executive of ABK said:
“Today’s closing announcement is a transformational milestone in ABK’s
development into a significant regional player in the Middle East. It helps us
to diversify our business profile and extends our regional connectivity,
providing many new opportunities for ABK and ABK (Egypt) to grow and flourish.
I would like to extend my warm thanks to the regulators and to all our
colleagues and associates at both banks for their hard work and generous spirit
of cooperation.”
ABK’s acquisition of Piraeus Bank Egypt realizes
ABK’s regional vision, Egypt being considered a key focus market with a well-regulated
yet underpenetrated banking market, further supported by the country’s
attractive macro-economic fundamentals and robust population dynamics, boasting
a young population of 85 million with a vibrant middle class. ABK has been
advised by J.P. Morgan as its exclusive financial advisor on the acquisition of
PBE, while Ernst & Young acted as transaction and tax advisors and Zulficar
& Partners acted as legal advisors.