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National Investment Bank drops plan to acquire ERTU share in Nilesat

National Investment Bank drops plan to acquire ERTU share in Nilesat

Cairo: Egypt’s National Investment Bank (NIB) has shelved a plan for acquiring the Egyptian Radio and Television Union’s (ERTU) share in the Egyptian Satellite Company (Nilesat) after the National Media Authority’s (NMA) interference to stop the deal.

Al Mal newspaper reported earlier that NIB intends to acquire the Egyptian Radio and Television Union’s (ERTU) 40.06% stake in the Egyptian Satellite Company (Nilesat) (EGSA) as part of the bank’s endeavor to terminate ERTU’s accumulated debts.

Sources told Al Mal that NIB obtained the approval of the Egyptian Financial Supervisory Authority (EFSA) to buy 40.06% stake in Nilesat capital and attempted to acquire it and transfer ownership, but NMA leaders met with the bank’s officials to cancel acquisition plan and find another solution to terminate ERTU’s indebtedness.

The bank obtained the financial watchdog’s approval without notifying Nilesat management or ERTU, causing the anger of ERTU leaders, who sought to stop the move.

Earlier, EFSA approved to exclude the National Investment Bank from submitting a mandatory tender offer after it put in an offer to acquire a 40.06% stake in Nilesat, amounting to 14.954 million shares.

NIB holds a stake of 10% in the company; other shareholders include Egyptian Investment Projects at 8.8%, National Bank of Egypt at 7.5% and Banque Misr at 7.5%.  

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