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Tuesday, 3 November 2020

IFC confirms AUB Egypt stake sale to Bahraini parent

M&A WATCH- The International Finance Corporation has confirmed it has offloaded its 10% stake in Ahli United Bank’s Egypt unit to its Bahraini parent in a press release picked by Al Mal. AUB Bahrain announced last month that it had purchased more than 30 mn shares in its Egypt arm for EGP 913.1 mn alongside Misr Strategia. The bank intends to buy all 43.5 mn shares it doesn’t own, equivalent to a 14.5% stake. The IFC acquired its 10% stake in the bank (which was named Delta International Bank at the time) in 2006 for USD 40 mn.

Background: In last month’s transaction, AUB Bahrain — which previously held 85.5% of its Egypt subsidiary — purchased 30.6 mn shares from foreign shareholders and 68.7k shares held by Egyptian shareholders. The Financial Regulatory Authority had said the bank would be buying all 43.5 mn of the remaining shares at EGP 29.783 apiece, including the International Finance Corporation’s 10% stake, and Qatar National Bank’s 4% stake.

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