PIF could acquire United Bank this month for USD 600 mn: Saudi Arabia’s sovereign wealth fund could acquire the state-owned United Bank for around USD 600 mn as soon as this month, Bloomberg reports, citing sources with knowledge of the matter. The Public Investment Fund (PIF) is in “advanced talks” over the acquisition and plans to purchase the bank through its Egypt-based investment vehicle, the Saudi Egyptian Investment Company, according to the business news outlet. A representative from United Bank denied having knowledge of the transaction when we asked yesterday, noting that any negotiations over a sale would go through the Central Bank of Egypt (CBE).

Refresher: Reports on the PIF’s interest in the lender have been floating around since May, with sources cited by local media saying the acquisition could close before the end of the year. The CBE owns 99.9% of United Bank, which it created in 2006 through the merger of smaller entities near the end of its well-regarded cleanup of the banking sector nearly two decades ago.

A long time coming: In 2017, the CBE said it intended to sell the bank to a strategic investor and appointed EFG Hermes and New York’s Evercore to advise on the transaction, before the covid-19 pandemic put the sale on ice.

Advisors: Reports in local media have suggested that PIF has appointed our friends at EFG Hermes as financial advisors and US law firm Akin Gump as counsel. CI Capital is reportedly acting as United Bank’s advisor.

REMEMBER- KSA is on a spending spree here in Egypt: The PIF earlier this year acquired minority stakes in four EGX-listed companies through its newly established arm for Egyptian investments in August. The buys are the first of USD 10 bn pledged by the fund earlier this year as part of Saudi efforts to support Egypt’s external position, which has been rocked by soaring commodity prices, large portfolio outflows, and a weaker EGP.