Back to the complete issue
Tuesday, 20 October 2020

Ithmaar Bank ups its stake in Faisal Islamic Bank to 14%

M&A WATCH- Bahrain’s Ithmaar Bank has acquired its subsidiary Faisal Investment Bank of Bahrain’s shares in Faisal Islamic Bank of Egypt, taking its holdings to 14.03%, according to an EGX filing (pdf). While the bank didn’t disclose the size of the stake or value of the acquisition, Mubasher has Ithmaar’s pre-transaction holding at 9.33%, suggesting the bank purchased a 4.8% stake in Faisal.

Background: The transaction comes as Gulf banks facing low growth in their home markets are looking for more exposure to Egypt’s fast-growing banking sector. Their targets of choice are largely the local arms of Lebanese banks, which are under pressure in their home market. Egypt’s vast unbanked population as well as the effectively unexplored potential of SME lending offer GCC banks opportunities for expansion their home markets lack. Emirates NBD and Bahrain’s Bank ABC are expected to make offers for Lebanon’s Blom bank in the coming weeks, while First Abu Dhabi Bank is reportedly in talks for the acquisition of Bank Audi.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; 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.