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Wednesday, 10 August 2022

Gulf Ins. Group wants to acquire AIG Egypt

Kuwaiti insurer wants AIG Egypt: A unit of Kuwait’s largest ins. group has submitted a takeover bid for AIG Egypt, the Financial Regulatory Authority (FRA) said in a disclosure (pdf) to the EGX yesterday. Gig-Egypt, a subsidiary of Gulf Ins. Group (Gig), wants to acquire between 75% and 100% of the company at EGP 164.15 per share, valuing AIG Egypt at some EGP 197 mn by our math. Gig-Egypt would finance the acquisition without the aid of its parent company, Gig-Egypt Managing Director Alaa Elzoheiry told Enterprise.

What’s next: Gig-Egypt is awaiting permission to move forward from the Financial Regulatory Authority (FRA), which is studying the offer, Elzoheiry said.

About the firms: The Kuwait-listed parent firm owns 99% of its Egyptian subsidiary, with the remainder held by Suez Canal Bank and Egyptian businesspeople. Gig has been operating in the Egyptian market since 1994 and offers both consumer and commercial ins. services. AIG Egypt is the local subsidiary of US ins. giant AIG, which is present in around 80 countries. Its Egyptian arm only offers property and travel covers. AIG entered Egypt back in late 2000; the company cut back its product portfolio here in 2017 and has been open to a potential exit since.

Advisors: Gig-Egypt has appointed Baker McKenzie as its advisor, Deloitte as its financial auditor and Prime Securities as its broker, Elzoheiry told us.

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