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Lebanon's Blom Bank to Sell Egypt Subsidiary

Lebanon's Blom Bank to Sell Egypt Subsidiary

Wednesday, 12 August, 2020 - 04:30
A general view shows the headquarters building of the Lebanese Blom Bank in Beirut, Lebanon June 13, 2016. REUTERS/Jamal Saidi

Lebanon’s Blom Bank said on Tuesday it was looking to sell its subsidiary Blom Bank Egypt, and that the Egyptian central bank had given approval to begin the due diligence process.

Blom has hired CI Capital to advise on a sale that could fetch $250 million to $300 million as the Lebanese lender tries to boost its capital, two sources familiar with the deal said.

Lebanese banks are trying to strengthen their finances as the country endures its worst financial crisis since the civil war.

However, any sale would have to be approved by the Blom board of directors, Blom said, without providing details about potential bidders, Reuters reported.

In July, Blom said its net profits fell by 77% in 2019 as a financial and economic crisis hit Lebanon and external auditors had given an “adverse opinion” concerning its financial statements in the country for the year.

Blom’s Egypt unit has 41 branches and a paid-up capital of 2 billion Egyptian pounds ($126 million), according to its website.

The Lebanese economy has been dealt another blow from last week’s explosion in Beirut that knocked out its main port.

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