EMIRATES NBD PJSC (Emirates NBD) and BNP Paribas SA (BNP Paribas) announced that they have signed a definitive agreement whereby BNP Paribas will sell its entire 95.2% stake in BNP Paribas Egypt SAE (BNP Paribas Egypt) to Emirates NBD, subject to the approval of the Central Bank of Egypt and other regulatory bodies in Egypt and the UAE.
Emirates NBD will simultaneously offer to acquire the remaining 4.8% of BNP Paribas Egypt from its minority shareholders at the same price.
The total consideration to be offered by Emirates NBD for 100% of BNP Paribas Egypt under the transaction is $500 million. This represents a multiple of 1.6 times the book value as of September 2012.
The transaction is expected to close by the end of the first quarter of 2013.
Emirates NBD intends to accelerate the development of BNP Paribas Egypt by capitalising on the long-standing experience of the strong local staff and management team already in place and by leveraging its regional corporate client base and market-leading retail banking model in its home market.
BNP Paribas Egypt, headquartered in Cairo, recorded revenues of $121 million and net earnings of $37 million) in 2011.
Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Emirates NBD (pictured), said: “This deal represents an excellent opportunity for Emirates NBD to enter the promising Egyptian market and achieve our strategic aspiration of expanding regionally. It represents an important milestone in our regional growth and we are confident that it will bring successful results to all our stakeholders”.