Libya-based Mediterranean Bank said on Tuesday it had sold a 49 per cent stake in itself to Bahrain-based Arab Banking Corp for 74 million dinars ($59 million).

Mediterranean Bank said it had signed the deal on Dec. 12 after raising its capital to around 94 million dinars. It did not give a figure on the scale of the capital increase.

The deal allows Arab Banking Corp to boost its existing presence in Algeria, Egypt and Tunisia with the addition of the North African country that has the highest GDP per capita.

A source at the bank said the agreement allowed Arab Banking Corp to manage the Libyan lender on a daily basis and have the right to appoint three directors out of a total seven.

In 1988, Arab Banking Corp opened a representative office in Tripoli. Libya's central bank is among Arab Banking Corp's biggest shareholders. – Reuters