Cairo – Mubasher: The board of directors of the Egyptian Financial Group Hermes Holding (EFG Hermes) approved an acquisition deal in partnership with the Sovereign Fund of Egypt to purchase 76% of the Arab Investment Bank (aiBANK).
The acquisition will be carried out by increasing the bank’s issued and paid-up capital to EGP 5 billion, EFG Hermes said in a bourse disclosure on Wednesday.
EFG Hermes will own 51% of the bank, while the Sovereign Fund of Egypt will hold a 25% interest through its fully-owned sub-fund for financial services and digital transformation.
The National Investment Bank will keep the remaining stake of 24% after the completion of the capital raise.
The board also approved the fair value (FV) estimation report of the capital raise shares of aiBANK prepared by PricewaterhouseCoopers (PwC) in which it valued the bank at EGP 900 million to EGP 1.2 billion with an average FV of EGP 1.1 billion.
The company said that the deal will become effective subject to the satisfaction of closing conditions.
In 2020, EFG Hermes achieved a consolidated net profit of EGP 1.30 billion, down from EGP 1.37 billion in 2019.
