banking

Let's talk about bonds: Five questions f...
March 8, 2021
Balance of Payments deficit up 80 percen...
March 8, 2021
European Central Bank under pressure as ...
March 6, 2021

bankingJanuary 17, 2021

BLOM agrees to sell Egypt unit

Deal estimated at below $480 million


BLOM Bank will sign a contract to sell its 99.4 percent stake in BLOM Bank Egypt to Bahrain-based Bank ABC. The value of the deal is estimated to be a little lower than $480 million, according to a source close to the deal.

The shareholders’ equity of BLOM Bank Egypt stood at $301 million at the end of September 2020 while its total assets reached $2.87 billion.

The proceeds will boost the foreign currency liquidity of the BLOM Bank group and will contribute to its 20 percent capital increase which the Central Bank requires from all local banks. BLOM Bank has also recently transferred around €100 million ($121 million) in earnings from its units in Europe.

BLOM Bank Egypt has a network of 41 branches. It offers retail and corporate banking services as well as SME banking and solutions for financial institutions.

Like other local banks, BLOM Bank is exiting foreign markets. It had also delisted its Global Depositary Shares (GDSs) from both the London Stock Exchange and the Luxembourg Stock Exchange.

businessnews