French bank BNP Paribas has inked a definitive agreement to offload its entire 95.2% stake in its Egyptian subsidiary to Emirates NBD.
In a bid to gain the full ownership in the acquired firm, the purchaser has also decided to buy the remaining 4.8% stake from its minority shareholders and the total transaction will be valued at $500m.
The transaction is expected to close by the end of first quarter of 2013, subject to Central Bank of Egypt and other regulatory approvals in Egypt and the UAE.
The acquisition will boost Emirates NBD presence in retail and corporate banking outside the UAE, by leveraging BNP Paribas Egypt regional corporate client base and market-leading retail banking model in its home market.
After completion of the transaction, both companies have agreed to collaborate in various business areas including trade finance, cash management and corporate and investment banking.
BNP Paribas will continue to service its clients in Egypt through this preferred partnership.
Headquartered in Cairo, BNP Paribas Egypt had registered revenues of EGP731m ($121m) and net earnings of EGP222m ($37m) in 2011.
The bank manages 69 branches and employs 1,450 staff, and serves nearly 200,000 retail and 3,000 corporate clients in the country.