SocGen sells Egypt unit to Qatar National Bank for $2 bn

12th December 2012, Comments 0 comments

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

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