(MENAFN - Emirates News Agency (WAM)) Emirates NBD PJSC (Emirates NBD) and BNP Paribas S.A. (BNP Paribas) announced the signing of a definitive agreement whereby latter will sell its entire 95.2% stake in BNP Paribas Egypt S.A.E. (BNP Paribas Egypt) to Emirates NBD, subject to Central Bank of Egypt approval and other regulatory approvals in Egypt and the United Arab Emirates.
Emirates NBD will simultaneously offer to acquire the remaining 4.8% of BNP Paribas Egypt from its minority shareholders at the same price.
The total consideration to be offered by Emirates NBD for 100% of BNP Paribas Egypt under the transaction is USD 500 million. This represents a multiple of 1.6 times the book value as of September 2012.
The transaction is expected to close by the end of the first quarter of 2013.
H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Emirates NBD, said: "This deal represents an excellent opportunity for Emirates NBD to enter the promising Egyptian market and achieve our strategic aspiration of expanding regionally. It represents an important milestone in our regional growth and we are confident that it will bring successful results to all our stakeholders".
Jean-Laurent Bonnafe, Chief Executive Officer of BNP Paribas declared: "Emirates NBD will be a strong partner for our Egyptian subsidiary and its staff, as well as for BNP Paribas' clients wishing to access strong on-shore banking capabilities in Egypt".
Rick Pudner, Group CEO of Emirates NBD, said: "This transaction confirms Emirates NBD's stated strategy and aspiration to be the leading bank in the MENA region. Egypt is a key market in our region with strong growth prospects.
BNP Paribas Egypt provides the Bank with an ideal entry opportunity to this important market and we are committed to further build and invest in the franchise supported by their local management team and staff".