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SFE teams up with EFG Hermes to acquire AIB

SFE teams up with EFG Hermes to acquire AIB

ArabFinance: The Sovereign Fund of Egypt (SFE) and Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO) plan to finalize their acquisition of Arab Investment Bank (AIB) (aiBANK) during the second quarter of 2021, Al Mal News cited Ayman Soliman, CEO of SFE.

Soliman added that the transaction is pending regulatory approvals that are now in process with the Central Bank of Egypt.

The fund and EFG plan to purchase up to 75% in the state-affiliated investment bank through a capital increase to EGP 5 billion.

EFG would become the controlling shareholder with at least 51%, transforming into a universal bank in the process, while the SFE would take no more than 25%.

In June 2020, the two investors got the Central Bank of Egypt approval to conduct a due diligence report on aiBANK.

In September 2020, EFG Hermes and the SFE expected to finalize the acquisition deal before the end of 2020.

On the other hand, Soliman noted that the fund is working on building a database with relevant information on army-owned companies to make it accessible to investors interested in acquiring stakes.

Some 10 of those companies are lined up for sales to outside investors, and sales in both gas stations operator Wataniya Petroleum and bottled water company Safi are expected to take place this year.

Earlier, an alliance of UAE’s Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Developmental Holding Company (ADQ) announced plans to acquire Wataniya Petroleum Company, the military fuelling station chain, by the second half of 2021.

Soliman further noted that the fund completed the establishment of four sub-funds, and is working on the nomination of the board of directors.


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