Mubasher TV
Contact Us Advertising   العربية

The Sovereign Fund of Egypt, EFG Hermes ink deals to acquire 76% of aiBANK

The Sovereign Fund of Egypt, EFG Hermes ink deals to acquire 76% of aiBANK
The transaction is expected to close in the third quarter of 2021.
EFG Holding
HRHO
-0.88% 17.94 -0.16

Cairo – Mubasher: The Sovereign Fund of Egypt (TSFE) and the Egyptian Financial Group Hermes Holding (EFG Hermes) signed agreements to acquire 76% of Arab Investment Bank (aiBANK).

Following the acquisition, the bank’s capital will be increased to EGP 5 billion to be compliant with the regulatory requirements of the Egyptian Banking Law, EFG Hermes said in a bourse disclosure on Thursday.

Under the deal, EFG Hermes will subscribe to 423 million newly issued shares of the bank at a price of EGP 6.03 per share, totalling EGP 2.55 billion.

In addition, TSFE will subscribe to 207 million newly issued shares of the bank at the same price for a total value of EGP 1.25 billion.

EFG Hermes will be the major shareholders of aiBANK with a 51% stake and TSFE will hold a 25% interest, while the National Investment Bank will hold the remaining 24% stake.

The deal received the Egyptian Cabinet’s approval on Wednesday, but is still subject to approval from regulatory entities, including the Central Bank of Egypt (CBE).

The Minister of Plannng and Economic Development and Chairperson of TSFE, Hala El-Saeed, said, that the transaction “underscores TSFE’s pivotal role in unlocking and maximising the value of state-owned assets.”

The CEO of EFG Hermes, Karim Awad, noted that the deal will help the company “enter the commercial bank space of part of a diversification strategy.”

The transaction is expected to close in the third quarter (Q3) of 2021.