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BNP Paribas selected Sahara Bank partner by Libya

DUBAI — BNP Paribas was selected as the strategic partner of Sahara Bank by the Central Bank of Libya recently. The Group thus becomes the first foreign bank to develop full service banking activities in Libya, in accordance with BNP Paribas' strategy of becoming one of the top tier financial groups in the Mediterranean Basin.

According to the terms of an agreement with the Government's investment holding company, BNP Paribas will acquire 19 per cent of the bank's capital and will immediately take over its operational control. The amount of this transaction totals 145 million euros, representing 3.6 times its current book value. Delivery of the shares will occur in mid-September following the completion of the formalities required by local stock exchange regulations.

Terms of this takeover of operational control include an option to purchase additional shares for up to 51 per cent of the capital over the next 3 to 5 years. The conditions for the purchase of the additional 32 per cent have already been established based on the price paid for the initial 19 per cent, increased by a fixed interest rate.

Sahara Bank is a full service bank with 1,500 employees and a market share of 17 per cent in loans and 22 per cent in deposits. Its clients are served by a network of 48 branches throughout the country.