CAIRO: Egyptian investment bank EFG Hermes Holding is targeting minority stakes in startups after its acquisition of a majority stake in state-owned Arab Investment Bank (AIB), its chief executive said on Sunday.
The acquisition of the 51 percent stake, approved by the cabinet on Wednesday, will be finalized in the third quarter, CEO Karim Awad told Reuters.
It is Egypt’s first privatization since 2006, when it sold a majority stake in Bank of Alexandria.
EFG Hermes, Egypt’s biggest investment bank, will use internal resources to buy new AIB shares worth 2.55 billion Egyptian pounds ($163 million), Awad said.
The Sovereign Fund of Egypt will also buy new shares worth 1.25 billion pounds, increasing AIB’s capital to 5 billion pounds, while the current owner, state-owned National Bank of Egypt, will retain a 24 percent stake.
“Our share in the bank will be financed through the liquidity available to the company on its own ... We have lots of liquidity,” Awad told Reuters, adding that EFG Hermes began working to fulfil all government conditions and approvals as soon as the cabinet approved the deal.
The central bank will have to approve the deal as well.
“We are not entering the banking sector to compete with the big banks operating in Egypt,” Awad said. “Rather, we are seeking to find a portion of the market to focus on to provide services to help it grow.”
“We can sell the bank’s services to EFG Hermes clients,” he added.
Awad said the new owners would retain all of AIB’s current employees, but would study a possible change in the bank’s name.
EFG Hermes eyes startups after AIB deal, CEO says
https://arab.news/65mk8
EFG Hermes eyes startups after AIB deal, CEO says
- AIB acquisition will be finalized in the third quarter, CEO says
- EFG not entering retail banking to compete with Egypt's big banks
Second firm ends DP World investments over CEO’s Epstein ties
- British International Investment ‘shocked’ by allegations surrounding Sultan Ahmed bin Sulayem
- Decision follows in footsteps of Canadian pension fund La Caisse
LONDON: A second financial firm has axed future investments in Dubai logistics giant DP World after emails surfaced revealing close ties between its CEO and Jeffrey Epstein, Bloomberg reported.
British International Investment, a $13.6 billion UK government-owned development finance institution, followed in the footsteps of La Caisse, a major Canadian pension fund.
“We are shocked by the allegations emerging in the Epstein files regarding (DP World CEO) Sultan Ahmed bin Sulayem,” a BII spokesman said in a statement.
“In light of the allegations, we will not be making any new investments with DP World until the required actions have been taken by the company.”
The move follows the release by the US Department of Justice of a trove of emails highlighting personal ties between the CEO and Epstein.
The pair discussed the details of useful contacts in business and finance, proposed deals and made explicit reference to sexual encounters, the email exchanges show.
In 2021, BII — formerly CDC Group — said it would invest with DP World in an African platform, with initial ports in Senegal, Egypt and Somaliland. It committed $320 million to the project, with $400 million to be invested over several years.
