QNB, Qatar’s largest lender, has bought an additional 19.95% stake in National Société Générale Bank- Egypt (NSGB) for 17.142bn Egyptian pounds through a mandatory tender offer.
QNB made the mandatory offer at 38.65 Egyptian pounds per share, thus totaling 17.142bn pounds.
With the latest purchase, QNB has successfully acquired a controlling stake of 97.12% in the Egyptian subsidiary of the French Société Générale Bank. NSGB is the second largest private bank in Egypt with 160 branches across the country, and more than 4,500 employees.
Egypt is the fourth largest economy in the Middle East and North Africa region, a market that is integral to QNB Group in achieving its goal to become a Middle East and Africa icon by 2017, a bank spokesman said, announcing the outcome of the mandatory offer.
Egypt’s tax authorities had said individual shareholders and investment funds that make capital gains from QNB’s bid will face a 10% tax, but Société Générale would be exempted from taxes for the transaction under an agreement to avoid double taxation between Egypt and France. QNB, which is owned 50% by the Qatar Investment Authority, had earlier entered into a “definitive agreement” with Société Générale to purchase the latter’s entire 77.17% for $2.56bn (about 17.42bn Egyptian pounds).
“This transaction is in line with QNB Group’s international strategy, which has become an integral part of our growth and commitment to diversify revenue sources. The Egyptian financial sector represents a significant growth opportunity with its combination of growth potential, increased future penetration of banking services, young and dynamic population to be served and the core links of Egypt within the Mena region,” QNB Group CEO Ali Shareef al-Emadi had said at the time of inking “definitive agreement”.
QNB, which is fast expanding overseas, has acquired stakes in the UAE-based Commercial Bank International, Iraq’s Mansour Bank and Libya’s Bank of Commerce and Development. QNB Group has presence in 24 countries.
QNB has said it aims to be a dominant player in two-three markets and is contemplating “sizeable” acquisitions to achieve scale as part of its plan to become a Middle East and Africa icon by 2017.
Gulf Times
