Cyprus usbbank moves to BLC of Lebanon

 — Investors take control in deal worth €36 mln —

BLC Bank, one of the oldest financial institutions in Lebanon with 35 branches across the country, is expected to buy all the shares in usbbank in a deal estimated at 36.4 mln euros.
Initial reports suggested that BLC was looking to acquire a controlling stake of 70%, but the Financial Mirror has learned that one of usb’s largest shareholders, shipowner Adonis Papadopoulos, is thinking of giving up his 30% stake, allowing the Lebanese investors to take full control.
From Friday’s negotiations when the bid price was set at 70c a share, the deal, headed by BLC’s chairman and CEO Maurice Sehnaoui, seems to have closed at 80c.
Central Bank approval is expected to be relatively smooth as since 2008 BLC has been part of the Fransabank Group, the biggest in Lebanon with 105 branches and fourth in terms of assets, customer deposits and net profits, and a branch network in eight countries.
Only recently, BLC reported a record growth of 32% in consolidated net income for the first half of the year to pretax profits of USD 25.6 mln. As at June 30, total assets reached USD 2.85 bln.
BLC Bank s.a.l. was incorporated in Beirut in 1950 and since 2002 has undergone restructuring and changed hands several times, initially controlled by Banque du Liban (the Central Bank of Lebanon), then sold off to the Qatar Investment Authority (QIA) and since August 2007 has been part of Fransabank s.a.l.