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Wednesday, 10 February 2021

Banque Misr launches MTO to snap up nearly all of CI Capital

CI Capital could soon be almost fully owned by Banque Misr: The state-owned bank filed a mandatory tender offer yesterday as it looks to raise its stake to up to 90% from the 24.7% it holds today. The MTO, which targets 653 mn shares at EGP 4.70 apiece (a small premium to the EGP 4.55 at which it opened this morning), could give the transaction a potential value of EGP 3 bn, the Financial Regulatory Authority (FRA) said in a statement (pdf). The offer is currently under study by the FRA, after which it would launch on the EGX and invite shareholders to sell. Banque Misr announced its intention to acquire the EGX-listed investment bank earlier this week.

CI shares closed down 0.9% today on the news.

The move is part of a trend we’re seeing of state-owned banks making a play for some of the country’s leading investment banks. This includes the (fairly recent) acquisition of Pharos by NBE’s Ahly Capital and of Arabeya Online by NI Capital.

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