QNB Requests CBE’s Approval To Acquire NSGB
National Societe Generale Bank – (NSGB) announced that Qatar National Bank’s (QNB) submitted a request to Central Bank of Egypt on 19/12/2012 to get its approval over QNB acquisition over NSGB entire shares.
QNB Group, the largest financial institution in the State of Qatar and the MENA region, announced that it has entered into a definitive agreement with Société Générale for the acquisition of its entire stake of 77.17% in National Société Générale Bank – Egypt (NSGB).
This transaction is a significant milestone in QNB Group’s strategy of international expansion and it represents the largest acquisition in the bank’s 48-year history. With the addition of Egypt as a new home market and one of the leading Egyptian banks to its network, QNB Group, the pre-eminent bank in the Middle East and North Africa, further extends its presence in the Arab world and will be able to increasingly benefit from the rapid development of trade and the strengthening of economic ties in the Arab and North African region and between Qatar and Egypt in particular. This also reflects QNB Group’s confidence in the long-term prospects of the financial sector and economy in Egypt.
The acquisition is consistent with QNB Group’s strategy to expand its existing presence in high growth emerging markets with large under banked populations. The transaction is the largest banking transaction in the Middle East since the financial crisis, and one of the largest cross-border investments in Egypt over the last two years.
NSGB – Egypt is the 2nd largest private (non-state owned) bank1 operating in the high growth Egyptian market through a network of c.160 branches across the country and more than 4,150 employees, with total assets as at 30 September 2012 reaching EGP63.3 billion (c.US$10.4 billion).
The offer for 100% of the share capital of NSGB amounts to US$2,558 million. The price to be offered to all shareholders will be converted into EGP at the time of the filing of the MTO with the Egyptian Financial Services Authority (EFSA).
NSGB’s net income during the first 9 months of 2012 amounted to EGP1,175 million, up by 8% year on year compared to the first 9 months of 2012.
