Societe Generale sells entire Egyptian subsidiary stake to Qatar National Bank for $2 bn
30 March 2013
French lender Societe Generale on Thursday said that it has finalised the sale of its entire 77.17-per cent stake in its Egyptian subsidiary National Societe Generale Bank (NSGB) to Qatar National Bank, for $2 billion.
NSGB is Egypt's second largest private bank with 160 branches, and has more than 4,500 employees.
The Paris-based bank said the transaction generates a net gain of €370 million ($473 million) in Q1 2013 and increases its Basel 2.5 Core Tier 1 ratio by 32 bps.
Earlier this week, Egypt's tax authority said that it would levy a 10-per cent tax on shareholders profiting from the stake sale, though NSGB's parent Societe Generale SA is exempted from the tax due to Egypts agreement with France to avoid double taxation
Qatar National Bank is 50 per cent owned by the Qatar Investment Authority, the country's sovereign wealth fund, which owns stakes in Barclays, Volkswagen and Harrods.
Societe Generale is one of the largest European financial services group.