Mubasher TV
Contact Us Advertising   العربية

Kuwait’s ABK denies plans to list Piraeus Egypt on EGX

Kuwait’s ABK denies plans to list Piraeus Egypt on EGX
Photo Archive
ABK
ABK
-0.39% 254.00 -1.00

By Ahmed Awad

Kuwait – Mubasher: Piraeus Bank Egypt will represent approx. 10-12% or $1 billion of Al Ahli Bank of Kuwait’s (ABK) $13 billion worth of assets, the CEO of the Kuwaiti bank said in his comment on ABK’s plan to take over the Greek bank in Egypt, noting that there is no present intention to list the prospected acquiree on the Egyptian Stock Exchange (EGX).

On Monday, Kuwait-based ABK said it was approved by Central Bank of Kuwait to acquire a 98.5% stake in Piraeus Bank Egypt.

ABK is awaiting the approval of Egypt’s central bank to complete the acquisition of a 98.49% stake in Piraeus Bank Egypt in a deal worth $150 million, CEO Michel Accad told Mubasher.

He added that the takeover is a solid opportunity for ABK, given Egypt’s promising banking sector.

The top executive also said the deal will be financed in-house, as ABK enjoys abundant liquidity, and a capital adequacy ratio that amounts to 22%. He also stressed that Piraeus will focus on retail segment.

Piraeus’ market share currently stands at 0.5%, but there are plans to boost it to 0.75% in the coming three to four years, according to the CEO.

Accad said that listing Piraeus on the EGX is unlikely, citing unfavorable timing currently. He also said increasing the bank’s capital is contingent upon achieving growth rates in the coming period.

Kuwait-listed ABK reported net profits of KWD 9.05 million in the first quarter of 2015, compared with KWD 8.12 million for the same period of 2014.

Translated by Sayed Abdel Rahman