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Sunday, 12 March 2023

CBE seeks advisors for United Bank sale

CBE wants advisors for United Bank sale: The Central Bank of Egypt (CBE) has sent investment banks — including “several big Western banks” — a request to pitch for an advisory role in the sale of United Bank of Egypt, Reuters reports, citing two sources it says are in the know. The bank is one of 32 companies in which the state plans to sell stakes in as part of a rebooted privatization program announced last month.

REMEMBER- The CBE — which owns 99.99% of United Bank — was negotiating to sell the lender to Saudi Arabia’s sovereign wealth fund PIF before talks stalled, apparently due to a dispute over valuation. The PIF opened talks to purchase United Bank last year. Bloomberg reported in December that the wealth fund could acquire the lender for USD 600 mn, but the two sides were reportedly not able to agree on how to value the bank following the devaluation of the EGP.

MD says bank is making strides: The lender has recorded nearly EGP 11 bn in profits since it was established in 2006, Chairman and Managing Director Ashraf El Kady told Enterprise. Profits were largely driven by its Shari’ah-compliant products, El Kady says.

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