Al Ahli Bank of Kuwait (ABK) said it has signed a deal with Piraeus Bank, one of the largest private lenders in Greece, to acquire 98.5 per cent of its Egyptian unit as part of its regional expansion strategy.

This marks the completion of the transaction, which was announced by ABK and Piraeus Bank in May last year.

The takeover of the Piraeus Bank Egypt (PBE) for $150 million realises ABK’s regional vision of Egypt being considered a key focus market with a well-regulated yet underpenetrated banking market, further supported by the country’s attractive macro-economic fundamentals and robust population dynamics, boasting a young population of 85 million with a vibrant middle class.

ABK’s acquisition of Piraeus Bank Egypt realizes ABK’s regional vision, Egypt being considered a key focus market with a well-regulated yet underpenetrated banking market, further supported by the country’s attractive macro-economic fundamentals and robust population dynamics, boasting a young population of 85 million with a vibrant middle class.

The new ABK subsidiary in Egypt will be rebranded ABK Egypt subject to name change approval by the official authorities, and the new identity will be rolled-out over the entire 39 branch network in the first half of 2016.   

The official share transfer took place in November last year.

On the deal, ABK chairman Talal Mohammed Reda Behbehani, said: "We are very proud to formally welcome PBE and its employees and customers into the ABK family. We are firmly committed to investing in its growth, and Egypt is a core market for us, building on the long standing business relationship that already exists between our two countries."

"We look forward to developing and growing our business in the Egyptian market.  I’d like to thank all the concerned authorities in Kuwait and Egypt who have helped us to complete the deal in a very good time frame," stated Behbehani.  

CEO Michel Accad said: "Today’s closing announcement is a transformational milestone in ABK’s development into a significant regional player in the Middle East. It helps us to diversify our business profile and extends our regional connectivity, providing many new opportunities for ABK and ABK (Egypt) to grow and flourish."

ABK has been advised by JP Morgan as its exclusive financial advisor on the acquisition of PBE, while Ernst & Young acted as transaction and tax advisors and Zulficar & Partners acted as legal advisors.-TradeArabia News Service