First Abu Dhabi Bank to acquire Bank Audi's Egyptian unit

First Abu Dhabi Bank PJSC said it signed a deal to acquire 100% of the share capital of Bank Audi (SAE), the Egyptian unit of Lebanon-based Bank Audi SAL.

Financial terms of the deal were not disclosed. The deal is expected to close within the next few months after customary conditions, including the receipt of regulatory approvals in the United Arab Emirates and Egypt, are satisfied, FAB said Jan. 20.

The UAE-based lender said the acquisition will make it one of the largest foreign banks in Egypt by assets, with pro forma total assets of more than 120 billion Egyptian pounds. As of September-end 2020, Bank Audi (SAE) had total assets of 83.2 billion pounds and a network of 53 branches.

FAB and UBS AG (London Branch) served as financial advisers for FAB on the deal, while Freshfields Bruckhaus Deringer LLP and Matouk Bassiouny & Hennawy were legal advisers. EGF Hermes served as sole financial adviser for Bank Audi, while Dechert LLP and Zulficar and Partners acted as legal advisers. Broadgate Advisors also offered advisory services for Bank Audi, while JPMorgan provided a fairness opinion related to the transaction.

FAB began discussions in January 2020 over the acquisition of the Egyptian unit, but later decided to terminate the talks amid the coronavirus crisis. In October of the same year, Bank Audi agreed to resume exclusive negotiations with FAB over the sale.

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As of Jan. 20, US$1 was equivalent to 15.75 Egyptian pounds.