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Thursday, 19 November 2020

NI Capital acquires Bank Audi’s Arabeya Online brokerage

M&A WATCH- State owned investment bank NI Capital has signed an agreement to acquire Bank Audi’s Arabeya Online brokerage, Planning Minister and National Investment Bank Chairman Hala El Said announced in a statement yesterday. The bank has completed due diligence and will now look to obtain regulatory clearance.

The acquisition will allow the bank to expand its non-banking financial services offering, including brokerage services for individuals and institutions, El Said said. “The transaction is a new step supporting NI Capital’s role in developing money markets in Egypt by offering comprehensive services to our clients,” said the minister.

Background: Arabeya Online was the first brokerage firm to receive an online trading license in Egypt in 2006 and is 100% owned by Bank Audi. The bank said earlier this year it was looking to offload its stake in Arabeya Online shortly after announcing it was looking to sell its Egypt unit to First Abu Dhabi Bank amid the ongoing Lebanese financial crisis. FAB recently resumed talks for the potential USD 700 mn acquisition of Bank Audi after having put the sale on hold in May, citing fallout from the coronavirus.

Advisors: NI Capital appointed Shahid Law Firm as legal counsel and Mazars Mostafa Shawki as tax advisor, while Ernst & Young consulted on digital transactions. Bank Audi tapped Zulficar & Partners as legal advisor and Broadgate Advisers as financial advisor to the deal.

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