Arab Bank wins stake in Libya's Wahda Bank

Arab Bank has been selected as the strategic partner for the privatisation of Wahda Bank, after financial offers were opened on 13 February.

Arab Bank submitted a price of Eur210m ($306m) for a 19 per cent stake in the bank, valuing the whole bank at $1.6bn, on 30 June 2007.

Arab Bank will now take management control of Wahda Bank and will be allowed to increase its stake to 51 per cent in three-five years.

Five banks were originally prequalified for the privatisation. They were Intesa Sanpaolo, Arab Banking Corporation, Attijariwafa Bank, Societe Generale and Arab Bank. Societe Generale withdrew from the process late in the process, citing technical reasons.

The privatisation of Wahda Bank follows the sell-off of a 19 per cent stake in Sahara Bank in September 2007 (MEED 16:1:08).