Back to the complete issue
Monday, 17 August 2020

Banque Misr, CI Capital could integrate their financial services operations

M&A WATCH- Banque Misr, CI Capital could integrate their financial services operations: Banque Misr and CI Capital could potentially merge or otherwise integrate the two entities’ brokerage, financial services, asset management, and non-banking financial services arms, Al Mal reports, citing unnamed sources. The move to streamline operations comes after Banque Misr purchased on Thursday an additional 9% stake in CI, making it the largest shareholder in the EGX-listed investment bank and a stake north of 24%.

Was BM’s new stake purchase the exit of Rashid Mohamed Rashid from CI? Former Trade Minister Rashid Mohamed Rashid’s Global Holding reportedly exited CI Capital and offloaded its 9% stake in CI Capital to Banque Misr, Hapi Journal reports, citing unnamed sources familiar with the agreement. The sale was reportedly closed for a total of EGP 377.1 mn at EGP 3.95 per share.

Advisors: CI Capital Securities Brokerage executed the transaction and Zulficar & Partners were legal advisors.

This is the second time in as many months that state and private-sector players have partnered up to look for opportunity in financial services. EFG Hermes and the Sovereign Fund of Egypt said in late June they were aiming to take a 76% stake in the Arab Investment Bank as EFG Hermes aims to turn itself into a universal bank. The proposed acquisition would see EFG Hermes take a controlling 51% stake in AIB.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.