Emirates National Bank of Dubai (ENBD), the largest bank in United Arab Emirates (UAE), is set to buy 95.2 per cent of BNP Paribas Egypt shares for $500 million, a deal which allows ENBD to expand in the region, and BNP to support its capital. The deal confirms the gulf investors' interest in the Egyptian market despite the political situation, especially after the acquisition of NSGB by the Qatar National Bank in a $2.5 billion worth deal. As per the Egyptian regulations, ENBD will make an offer to minority shareholders for the remaining stake, said a press statement issued by the bank on Thursday. The deal has to follow the usual regulatory steps imposed by the financial supervisory authority (EFSA) before getting the final approval, which is expected to materialise by the end of the first quarter of 2013. The bank's offer exceeded that of the Moroccan Bank Wafa to buy the asset, priced at 1.6 of its book value in September 2012. BNP Paribas, one of the biggest French banks, put on sale its assets in Egypt last June to increase its capital and exit non substantial operations. The BNP Paribas acquisition is the first major expansion of the regional presence of ENBD which was created in a state-backed merger between Emirates Bank International and National Bank of Dubai in 2007. Chief executive officer at ENBD, Rick Pudner said the bank is looking for acquisitions in fast-developing African markets to satisfy investor demand for growth it is unlikely to deliver at home, in an interview with Reuters last month. The bank's chairman Sheikh Ahmed Ben Saeed Al-Maktoum stated that this deal is an excellent opportunity for ENBD to enter the promising Egyptian market and to achieve their strategic plans to expand in the region. The deputy CEO at BNP Paribas Egypt, Shahinaz Foda, told the media that the agreement was signed, and the Egyptian unit's role was to perform the Due Diligence by providing the financial data and the details related to the economic institutions being sold or acquired.
