Al Ahli Bank of Kuwait K.S.C.P. (ABK) has reached an agreement to acquire 98.5% stake in Piraeus Bank Egypt S.A.E. (PBE), the Egyptian unit of Greece-based Piraeus Bank, for $150m.

The transaction is subject to central bank of Egypt and other regulatory approvals in Egypt, Greece and Kuwait, including the Hellenic Financial Stability Fund (HFSF).

Under the agreement, ABK will also acquire at par value $23m of parent book loans related to the Egyptian operations.

The deal will have a positive and accretive impact on Piraeus’ financials because it results in an increase of the pro-forma 31 March 2015 ratio by about 30 bps and additional liquidity of EUR200m for the Group.

Piraeus Bank CEO Anthimos Thomopoulos said: "The successful conclusion of the disposal of Piraeus Bank Egypt underlines our commitment to our shareholders, in full alignment with our restructuring plan.

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"The transaction reflects a fair value for our subsidiary and provides our Group with capital accretion, freeing liquidity at the same time."

ABK is a commercial and retail bank in Kuwait with market capitalization in excess of $2.0bn and total assets of $11.9bn. PBE had total assets of EUR1.0bn as of 31 December 2014 and offers a range of products and services to corporate and retail clients.