The source stated that both the CBE and KIA will divest 20% each from AAIB to a strategic investor and a stake sale on the Egyptian stock exchange
The Central Bank of Egypt (CBE) has reportedly agreed with the Kuwait Investment Authority (KIA) on a divestment plan to sell a combined 40% stake in the Arab African International Bank (AAIB) in 2024, according to local media citing a source close to the matter.
The source stated that both the CBE and KIA will divest 20% each from AAIB to a strategic investor and a stake sale on the Egyptian stock exchange.
The AAIB is part of the government’s privatization program to sell off state-owned assets alongside the United Bank of Egypt and Banque Misr.
The list, which consists of 35 state-owned companies being prepared to be sold to strategic investors and/or to go public on the local stock market, was launched under the State Ownership Policy Document.
The central bank and KIA each currently hold a 49.37% stake in AAIB, with the leftover 1.26% distributed to “others.”
Egypt has attracted $5 billion from the privatization program so far, with additional deals worth around $5 billion are in the works and are expected to be completed by mid-2024, including the sales of the wind power plant in the Zaafarana area in December 2023 and the Siemens power plant in Beni Suef in June 2024.
In a recent statement, MPED Minister Hala El-Said explained that the country is looking to bring in revenues of EGP 70 billion ($2.27 billion) by the end of FY2023/2024.
Regarding the IPO program’s success, the report noted that the first phase, between March and August 2022, achieved a 100% implementation rate, while the second phase, which spanned from August 2022 to July 2023, also saw 100% completion.
