Alex Bank Sale Lawsuit Delayed To April 15th

The State Commissioners Authority at the Administrative Court postponed the lawsuit raised to nullify the sale of Alex Bank to Intesa Sanpaolo Group to April 15th.

Shehata Mohamed Shehata, Chairman of the Egyptian Center for Integrity and Transparency, raised the lawsuit against the former Prime Minister, Ahmed Nazef, and the former Minister of Investment, Mahmoud Mohie El-Din.

Shehata demanded the nullification of the sale contract signed by the former Minister of Investment and Intesa Sanpaolo Group for violating the law of tenders and auctions. Selling Alex Bank’s 188 branches and lands in Cairo and Alexandria has posted negative impact on many Egyptian companies as Alex Bank contributed to capitals of 12 projects, 13 listed investment funds and 154 investment companies, he stated.

The sale also harmed the rights of the shareholders after selling the bank at US$ 12 per share for Intesa Sanpaolo. Alex Bank also sold its 22% stake in the Egyptian American Bank at US$ 38 per share.

Shehata claimed that Nazef and Mohie El-Din signed an agreement in 2006 to sell Alex Bank to Intesa Sanpaolo in a deal that wasted US$ 3.5 billion of public money. The government sold 80% of Alex Bank to Intesa Sanpaolo Group at US$ 1.6 billion (EGP 9.2 billion), although banking experts estimated the market value of the bank at US$ 5.5 billion at that time.