Egypt’s largest private-sector bank in Egypt and largest listed company, Commercial International Bank (CIB), said on Sunday it had concluded a deal to sell its investment banking arm CI Capital to an Orascom Telecom unit for 924 million Egyptian pounds ($118 million).
The CIB corporate headquarters are located in Cairo, Egypt. The bank serves more than 500,000 clients and has more than 6,000 employees.
Orascom Telecom (OTMT), which possesses holdings in media, technology and cable businesses in addition to energy, logistics and transport, is expanding into financial services and had nominated its subsidiary Beltone Financial, to buy the total share capital of CI Capital.
“Following CIB’s release dated February 14th 2016, and Orascom Telecom and Media Technology (“OTMT”) Holding nomination to Beltone Financial Holding (“Beltone”) – OTMT’s subsidiary – to act as the purchasing entity in the sale of 100% of CI Capital Holding (“CI Capital”), CIB would like to announce that it has reached a final agreement on the terms and conditions related to the sale transaction with OTMT and its subsidiary Beltone Financial”, CIB said in a statement on its website.
“CIB and Beltone Financial have signed a Share Purchase Agreement (SPA) today, and will move forward to complete said transaction, with the aim of finalizing it before the end of the first quarter of 2016,”the statement added.
Earlier this month, CIB accepted a bid from billionaire Naguib Sawiris’s OTMT to buy CI Capital.
OTMT is planning to merge CI Capital with Beltone Financial, which it bought last year for almost 650 million Egyptian pounds.
Furthermore, CIB said on Sunday it had appointed former central bank governor Hisham Ramez as vice chairman and managing director.
“Mr. Ramez will be overseeing the overall business of the bank and managing day-to-day operations, where he will be responsible for both key business lines i.e. consumer and institutional banking as well as the COO area,” it said.
($1 = 7.8300 Egyptian pounds)