EFG Hermes completes advisory on Bank Audi Egypt’s sale to First Abu Dhabi Bank

Egyptian investment bank EFG Hermes announced on Wednesday that it had completed advisory to Bank Audi on its sale of 100 percent of the share capital of its Egyptian subsidiary to First Abu Dhabi Bank (FAB).

EFG acted as sole financial advisor to Bank Audi.

The acquisition deal will see FAB consolidate Bank Audi Egypt’s total assets of 85.6 billion Egyptian pounds ($5.5 billion) as of December 2020 and its well-established retail and corporate banking operations across a network of 53 branches.

FAB has been operational in Egypt since 1975 and following the acquisition, it will be positioned as one of the largest foreign banks by assets in the Egyptian banking sector, with pro-forma total assets of over 130 billion pounds as of December 2020.

“We are very pleased to have taken a vital role in supporting Bank Audi in the sale process of its Egyptian subsidiary,” Mostafa Gad, co-head of Investment Banking at EFG Hermes, said in a statement.

“Proceeds from the sale will be channeled to shore up Bank Audi’s capitalisation and strengthen its resilience in the face of challenging market conditions in Lebanon.

“The transaction also helps FAB grow its presence in one of the region’s most structurally solid banking sectors. We are proud to have contributed to this landmark transaction in such a strategic sector of the Egyptian economy.” Gad added.

The acquisition marks the ninth transaction by EFG’s investment banking team in 2021 following the execution of two merger and acquisition (M&A) transactions, two initial public offerings (IPOs) and four debt transactions across its Middle East footprint.