By Shane McGinley
Arab Banking Corporation to close deal in first quarter of 2011, marks bid to expand presence in Libya
Banking Corporation (ABC), Bahrain's second largest bank, has agreed to buy a
49 percent stake in Libya’s Mediterranean Bank.
deal is expected to close in the first quarter of 2011 subject to regulatory
approval, the bank said Wednesday in a statement.
Central Bank of Libya earlier this month became a majority shareholder in ABC
with 59.37 percent of its stock, after buying Abu Dhabi Investment Authority’s
17.7 percent stake.
Kuwait Investment Authority holds an additional 29.69 percent share.
return for its 49 percent stake, ABC will inject LYD74m (about $59.55m) into Mediterranean
Bank, the lender said.
bank is seeking to expand its presence in Libya, said Hassan Ali Juma,
president and CEO.
acquisition by ABC of a 49 percent shareholding in Mediterranean Bank
represents a unique opportunity to cement the geographic reach of ABC's
existing North African businesses, which already include operations in Egypt,
Tunisia and Algeria,” he said in a statement.
had assets worth $26bn on its balance sheet at the end of the third quarter.
The lender’s net profits for the first nine months of 2010 rose 1.8 percent to
on the Bahrain Stock Exchange, ABC is represented in 22 countries. In November,
it launched operations in Moscow, making it the first Arab bank to have a
presence in Russia.