Bank ABC begins due diligence on Blom Bank Egypt
M&A WATCH- Bank ABC starts due diligence on Blom Bank Egypt: The Arab Banking Corporation (ABC) has begun due diligence on Blom Bank Egypt ahead of a submitting an offer to acquire the Lebanese bank’s Egypt assets, Al Shorouk reports, citing unnamed sources familiar with the matter. Bank ABC had signalled its interest earlier this month after announcing it had entered early-stage talks over the acquisition. Blom confirmed in August it is looking to sell its Egypt assets as its home country suffers its worst economic crisis in decades.
Who else is in the running? Bank ABC is competing with fellow GCC lender Emirates NBD, which could wrap up its due diligence by early October, Al Shorouk’s sources said. Sources previously told the paper that Emirate NBD has valued Blom Egypt at EGP 6.5-7 bn, around 1.5x the bank’s total shareholder equity. An unnamed non-banking financial services firm is also considering submitting an offer for the bank, unnamed sources said earlier this month.
Advisors: Blom has hired CI Capital to advise on the sale, while HSBC is providing financial advice to Bank ABC.