National Bank of Kuwait (NBK), has won a competitive tender to buy Egypt's Al Watany Bank for a total amount of US Dollars 516 million. The bid is another important step within NBK's regional expansion strategy.
NBK has won the tender after submitting a price equal to 4.16 times book value and 17 times earnings. NBK submitted a price of 77.01 Egyptian pounds per share with a 2 Egyptian Pound margin above the price submitted by the second competitor (the alliance of Commercial Bank of Kuwait and Al Noor Financial Investment Company) which amounted to 75 Egyptian pounds per share. The deal is expected to be finalized by the end of this year after obtaining both Egyptian and Kuwaiti relevant regulatory approvals and changing Al-Watany Bank's current name to reflect its acquisition by NBK.
Commenting on the winning of the bid, NBK's Chief Executive Officer, Ibrahim S. Dabdoub said that the deal constitutes a significant step within NBK's expansion strategy in the region. He also expressed his great satisfaction for having the opportunity to enter the Egyptian market as it is one of the most promising markets in the region.
Dabdoub also commended on the high level of professionalism and remarkable transparency and cooperation from the Egyptian monetary and banking authorities and the leading management of Al-Watany Bank. Dabdoub also highlighted the significance of this deal for NBK's future in light of the magnitude of the Egyptian market, the largest in the Arab world, and the deeply rooted and historical ties between the two countries.
Dabdoub also expected the deal to further enhance the multi-faceted cooperation between Kuwait and Egypt and to encourage trade and investment flows between the two countries. He emphasized that over 400 Kuwaiti companies and organizations, most of them NBK clients, are currently involved in investment and business activities in Egypt, in addition to more than 400 thousand Egyptian expatriates living in Kuwait who are in need of various financial and banking services. Al-Watany Bank currently runs 22 branches located in different cities in Egypt and has assets amounting to close to US Dollars 2 billion.
NBK Capital, the investment and merchant banking arm of NBK, was the financial advisor for NBK throughout the entire acquisition process of Al-Watany Bank.
