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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.

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