Bank of Sharjah unit to buy Lebanon bank

Emirates Lebanon Bank, a fully-owned subsidiary of Bank of Sharjah, said it would acquire the Lebanese branch of Banque Nationale de Paris Intercontinentale, a subsidiary of BNP Paribas for an undisclosed amount.

The deal is subject to the approval by the Central Bank of Lebanon.

Following the approval of the agreement, Emirates Lebanon Bank will be 81 per cent owned by Bank of Sharjah with BNPI France holding the remaining 19 per cent. A collaboration agreement between the Lebanese bank and BNP Paribas at the level of private banking and asset management is also being considered.

Through this acquisition, clients will be able to benefit from a continuing relationship with the bank as well as an enhanced offering of products and services. Management of operations will continue to be handled by staff from BNP Paribas, while existing employees will be awarded a three-year job protection scheme.

Varouj Nerguizian, Executive Director and General Manager of Bank of Sharjah, and Chairman and General Manager of Emirates Lebanon Bank, said 30 per cent of the capital of the Lebanese bank will be offered at a later stage to a select group of Gulf and Lebanese private investors subject to regulatory approval.

Bank of Sharjah had earlier declared its intention to gradually build a franchise throughout the Middle East region, and recently raised the share capital of Emirates Lebanon Bank to $50 million (Dh183.5m), while injecting a cash contribution to capital of $100m in order to boost equity to $150m.

The Lebanon operation is considered as a platform for the Bank of Sharjah's future expansion in the Levant where it intends to benefit from exceptionally strong synergies with its Gulf-based clientele.