Race to acquire Blom Bank Egypt could be nearing its final stages
Two of the banks competing for Blom Bank’s Egypt arm are reaching the end of the due diligence process and may start preparing offers as soon as next week, Hapi Journal reports, citing sources familiar with the transaction.
Emirates NBD finished due diligence on the Lebanese bank last week, and rival Arab Banking Corporation (Bank ABC) is on track to finish as early as the end of next week, the sources said.
Emirates NBD was the first to express interest after Blom confirmed in August that it is looking to sell its Egypt assets in response to the economic crisis in Lebanon.
NBD reportedly values Blom Egypt at 6.5-7 billion Egyptian pounds, around 1.5x the bank’s total shareholder equity.
Bank ABC began due diligence late September but warned that there is “no certainty” it would go ahead with the transaction.
Advisors: Bank ABC has tapped HSBC to advise on the sale while Blom has hired CI Capital as its financial advisor and Baker Mackenzie to cover legal