The Al-Ahli Bank of Kuwait will launch its commercial name in all branches of Piraeus Bank-Egypt by the end of 2015, according to the bank’s Chief General Manager and CEO in Egypt, Michel Accad. The bank acquired Piraeus Bank-Egypt two months ago.
Accad explained that Al-Ahli Bank of Kuwait is now working on finalising all the organisational and legal procedures necessary for the acquisition of 99% of Piraeus Bank-Egypt.
He added that Piraeus’ property is expected to be officially transferred to Al-Ahli Bank of Kuwait during the third or fourth quarter of this year. This will occur after approval is given by the Central Bank of Egypt (CBE) and the Egyptian Financial Supervisory Authority (EFSA).
Al-Ahli Bank of Kuwait has acquired 99% of Piraeus Bank-Egypt last June, and the total value of the deal amounts to $150m, which is 140% of the total book value of the bank in March 2015.
Acquiring Piraeus Bank-Egypt came upon the recommendation of J.P. Morgan, Financial consultants of Al-Ahli Bank of Kuwait, while Ernst Young was the tax consultant. The Zulficar and Partners law firm was the legal consultant to this deal.
According to Accad, the brand name of Piraeus Bank-Egypt will be substituted with that of Al-Ahli Bank of Kuwait-Egypt in all the 39 branches of the bank by the end of 2015, after the CBE and the EFSA’s approval.
He added that Al-Ahli Bank of Kuwait’s acquisition of Piraeus Bank-Egypt reflects the former’s regional vision of Egypt as one of the main markets allowing for sustainable growth, diversity of business, as well as efficient employment of capital.
Accad also said that Egypt is the second external market in which Al-Ahli Bank of Kuwait exists after the UAE, and it is the second Kuwaiti bank to run its business in Egypt.
Al-Ahli Bank of Kuwait was founded in 1967, and achieved a net profit of KWD 37.6m ($124m) by the end of 2014, with the total assets value rising to almost KWD 3.5bn ($11.6m).
The value of assets of Piraeus Bank-Egypt by the end of 2014 was approximately EGP 8.62bn (equivalent to $1.1bn).