Home Business Egypt offers 45% stake in state bank | The Guardian Nigeria News

Egypt offers 45% stake in state bank | The Guardian Nigeria News

by Nigeria Currently
Egypt offers 45% stake in state bank | The Guardian Nigeria News

Egypt’s state-owned Banque Misr seeks to offer a stake of up to 45% of its Banque du Caire unit on the Egyptian Stock Exchange during the first half of 2020.

The Chairman, Mohamed Eletreby, who disclosed this on Monday, also said the state-owned institution is open to sell part of the stake to a foreign investor during the initial public offering (IPO).

A deal to sell Banque du Caire was cancelled in 2008 and an IPO has been postponed repeatedly over the past three years.

The Chairman and Chief Executive Officer of Banque du Caire, Tarek Fayed, said last August that the bank expects to sell minority stake by early 2020.

“We want to sell a stake of up to 45% … the selling will be inside Egypt, there will be no global depository receipts (GDR),” said Eletreby.

A roadshow was taking place in the United States to sell Banque du Caire shares, he added.

“It is possible that a foreign investor gets a stake… The roadshow will decide,” he said.

Meanwhile, the country’s Commercial International Bank (CIB) is proposing to issue up to 15 billion Egyptian pounds ($951 million) in financial instruments to fund expansion after rapid growth in 2019, its board said yesterday.

The bank’s consolidated net income rose 23 per cent in 2019 to 11.8 billion pounds, it reported late on Monday.

The board authorised its chairman to call an extraordinary general assembly to approve the proposal, it said in a statement sent to the Egyptian stock exchange.

“Moving into 2020, we remain positive about the economic outlook and confident about CIB’s ability to ride out market variations,” it said in a statement accompanying its 2019 results.

The board also proposed increasing the bank’s paid-in capital by 4.925 billion Egyptian pounds to 19.702 billion pounds by distributing one free share for every three existing, the statement said.

It also proposed a cash dividend of 1.25 pounds per share for 2019.

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