National Bank of Egypt subsidiary says quits bid to buy CI Capital

National Bank of Egypt’s investment banking arm, Al Ahly Capital (ACH) decides to drop its bid to buy CIB subsidiary CI Capital, it announced earlier in the day. This comes after failing to agree on a timeframe to complete feasibility studies.

“Al Ahly Capital has decided not to resume procedures for its acquisition bid and hopes that CIB achieves its goals in the interests of its stakeholders,” it said in a statement.

CIB said earlier on Monday that Al Ahly had submitted a non-binding offer to buy 100 percent of its investment banking business for 1 billion Egyptian pounds ($127.71 million), Reuters reported.

CI Capital had already accepted in December a 1-billion pound bid from Orascom Telecom and Technology, but the deal had not been finalised.

OTMT, owned by Egyptian billionaire Naguib Sawiris, plans to merge CI Capital with Beltone Financial, which it bought in November for almost 650 million Egyptian pounds.

OTMT is  and founder of the Free Egyptians political party, which had a strong performance in recent parliamentary elections.

OTMT has holdings in media, technology and cable businesses as well as energy, transport and logistics.

CI Capital is working on four initial public offerings this year in the construction, consumption and tourism sectors. It also plans to open a brokerage firm in the United Arab Emirates in the second quarter of this year.