EFG Hermes: Arab Investment Bank valuation pegged at EGP 1.1 billion

EFG Hermes said on Wednesday that the Arab Investment Bank (aiBank) had been valued between 900 million Egyptian pounds and 1.2 billion pounds ($57.3 million and $76.5 million), projecting share fair market value of 1.1 billion pounds.

EFG’s board has approved a deal to acquire 76 percent of aiBank’s shares of in alliance with the Sovereign Fund of Egypt (TSFE).

The two financial institutions will be concluding the acquisition deal through increasing the aiBank’s issued and paid-up capital to 5 billion pounds.

After concluding the deal, EFG shares in aiBank will be raised to 51 percent, while the share of TSFE through the Egypt Financial Services and Digital Transformation Sub-Fund, which is wholly owned by it, will be at 25 percent.

The National Investment Bank will be maintaining a 24 percent after increasing the capital.

In June 2020, the Central Bank of Egypt (CBE) gave the green light for EFG and the TSFE to start the due diligence examination of the aiBank with the aim of owning a stake of not less than 76 percent.