Societe Generale to sell majority stake in Egyptian subsidiary to Qatar National Bank for $2 bn
13 December 2012
Societe Generale yesterday said that it will sell its majority stake in its Egyptian subsidiary National Société Générale Bank (NSGB) to Qatar National Bank (QNB) for $2 billion, as part of the French bank's plan to meet new capital requirements.
The Paris-based lender said that QNB will also buy Société Générale's stakes not already owned by NSGB in some of the local subsidiaries of NSGB, taking the total deal value to about $2 billion.
At the closing of the transaction, Societe Generale, France's second-largest bank by market value, said that it will book a net gain of around €350 million ($450 million).
''The positive impact on Société Générale Basel III pro forma Core Tier 1 at the end of 2013 is estimated at close to 30 bps,'' the bank said
''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 Middle East and North Africa," QNB Group's CEO, Ali Shareef Al-Emadi, said in a statement.
Established in Egypt in 1978 as an affiliate of Société Générale Group, NSGB is one of the largest private banks operating in the country.