Lebanese lender Blom Bank is reportedly looking to sell its Egyptian subsidiary Blom Bank Egypt as the Central Bank of Egypt’s (CBE’s) gave its nod to start due diligence process, Reuters reported.

The divestment is said to be part of the bank’s plan to boost its capital.

A successful sale could fetch as much as $250-300m, the report added.

The lender has approached potential buyers including Emirates NBD – the largest bank in Dubai.

The report did not disclose any further details regarding the potential bidders.

Blom said that a successful deal is subject to the receipt of approvals from its board of directors.

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Its Egypt business operates 41 branches with EGP2bn ($126m) in paid-up capital.

The Reuters report added that Blom has appointed CI Capital to advise it on the sale.

Emirates NBD entered Egypt by acquiring a subsidiary of BNP Paribas back in 2013.

A successful deal with Blom Bank will expand its operations in the country, according to Reuters.

In Egypt, Emirates NBD operates 69 branches in major districts and cities such as Greater Cairo, Giza, Alexandria, North Coast, Delta, Upper Egypt, Sinai, and the Red Sea.

Banks in Lebanon are eyeing to strengthen their balance sheets as the country grapples with a major financial crisis.

In May, First Abu Dhabi Bank (FAB) temporarily ended talks to buy Blom Bank’s local rival Bank Audi due to the Covid-19 pandemic.

In July, Blom reported a 77% decline in 2019 net profits.

Last week, the country’s economy has been hit by a massive explosion in Beirut’s main port.