Sovereign Fund of Egypt, EFG Hermes gain c.bank approval for aiBANK takeover
Financial Services and Fintech sub-fund, owned by the Sovereign Fund of Egypt (TSFE), and EFG Hermes announced on Monday they had received the Egyptian central bank’s approval on the acquisition of Arab Investment Bank (aiBANK).
EFG Hermes and TSFE Financial Services and Fintech sub fund are acquiring 76 percent stake of aiBANK for a total value of 3.8 billion Egyptian pounds ($242 million), according to a joint statement read.
The acquisition will be structured as a capital increase that will increase the issued and paid-in capital of the bank to 5 billion pounds, whereby EFG Hermes will own a stake of 51 percent, while TSFE Financial Services and Fintech sub fund will have 25 percent.
The National Investment Bank (NIB) will be maintaining a 24 percent after increasing the capital.
The completion of the transaction is subject to the fulfilment of the remaining conditions precedent, the statement added.
In April, EFG’s board approved a deal to acquire 76 percent of aiBANK’s shares of in alliance with the TSFE.
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.