SocGen sells Egypt unit to Qatar National Bank for $2 bn
French bank Societe Generale said Wednesday said it had sold its 77 percent stake in Egyptian unit National Societe Generale Bank to Qatar National Bank for $1.97 billion (1.5 billion euros).
"At the closing of the transaction, the (Societe Generale) Group will book a net gain of around 350 million (euros)," the bank said in a statement.
It said the price doubled the stated book value of NSGB as of September 30.
Societe Generale said it will sell its stake to QNB Group by tendering its shares in a mandatory tender offer that QNB Group will launch after receiving regulatory approval.
The price of the share offer values NSGB at $2.6 billion, with Societe Generale to receive nearly 1.98 billion.
QNB Group will also buy Societe Generale's stakes in some NSGB subsidiaries, taking the French bank's total consideration to $2 billion.
Societe Generale said it expects the transaction to close in the first half of 2013, and that it would increase its Basel III pro-forma Core Tier 1 ratio by 30 basis points.
© 2012 AFP