EFG Hermes and Sovereign Fund of Egypt’s (TSFE) acquisition of 51 percent of the capital of Arab Investment Bank (AIB) was approved by the cabinet last week
Nearing the closure of Egypt’s first bank privatization in more than a decade, investment bank EFG Hermes Holding is looking to acquire minority stakes in startups, CEO Karim Awad told Reuters earlier today.
EFG Hermes and Sovereign Fund of Egypt’s (TSFE) acquisition of 51 percent of the capital of Arab Investment Bank (AIB) was approved by the cabinet last week.
The deal is expected to be finalized in the third quarter, said Awad to Reuters.
The acquisition is Egypt’s first bank privatization since selling a majority stake in the Bank of Alexandria back in 2006.
“We are not entering the banking sector to compete with the big banks operating in Egypt,” Awad said. “Rather, we are seeking to find a portion of the market to focus on to provide services to help it grow.”
“Our share in the bank will be financed through the liquidity available to the company on its own ... We have lots of liquidity,” Awad stated, adding that EFG Hermes began working to fulfil all government conditions and approvals as soon as the cabinet approved the deal.
The CEO did note that the company will be keeping all current employees of AIB, however a name change for the bank could be in the cards.