Blom Bank in Talks with Bahrain's ABC to Sell Egyptian Unit

Lebanon’s Blom Bank has entered exclusive talks with Bahrain’s Bank ABC to potentially sell its ownership in Blom Bank Egypt, Blom Bank said in a statement on Wednesday.

“Both parties will consequently enter into negotiations in order to reach a final agreement, however, there is no certainty that any transaction will be completed,” the statement said.

Blom Bank owns 99.42% of the issued share capital of Blom Bank Egypt, the statement said.

Bahrain’s ABC said in September it was in preliminary talks to buy Blom Bank’s Egyptian subsidiary.

Lebanon is in the throes of a financial crisis that has paralyzed its banks, sunk the currency and fueled poverty and unemployment. The central bank in August called on banks to increase their capital by 20% by the end of February.