With the deal, EFG Hermes will own 51 percent of the bank, while the Sovereign Fund of Egypt will hold a 25 percent interest
The banking sector continues to see a lot of interest and movement in 2021 with news that Egyptian Financial Group Hermes Holding’s (EFG Hermes) board of director has just approved an acquisition deal to acquire 76 percent of the Arab Investment Bank (aiBANK).
In partnership with the Sovereign Fund of Egypt, the acquisition will be carried out by increasing the issued and paid-up capital of the bank to LE 5 billion.
With the deal, EFG Hermes will own 51 percent of the bank, while the Sovereign Fund of Egypt will hold a 25 percent interest through its fully-owned sub-fund for financial services and digital transformation. The National Investment Bank will retain 24 percent of aiBANK after the capital increase.
Hermes’ board also approved the fair value (FV) estimation report, prepared by PricewaterhouseCoopers (PwC), on the capital increase which valued aiBANK at between LE 900 million to LE 1.2 billion with an average FV of LE 1.1 billion
The statement added that the acquisition is subject to fulfilling the preconditions and the procurement of approvals from the relevant authorities, especially the Central Bank of Egypt.
