Egypt’s sovereign Fund (TSFE) and the Arab Republic-based financial service company EFG Hermes Holding have acquired 76 percent of Arab Investment Bank (AIB).
The acquisition deal, EFG Hermes have the majority share of 51 percent and will increase the paid-up capital in the bank to EGP 5 billion ($319 million) and will subscribe to 423 million newly issued shares of the bank at a price per share of EGP6.03 and a total value of EGP2.55bn.
TSFE will on the other hand subscribe to 207 million newly issued shares of AIB at the same price per share, for a total value of EGP1.25bn and control 25 per cent of AIB.
AIB’s main shareholder, state-run National Investment Bank, will now control 24 per cent of the financial institution.
With the new structural change, AIB will focus on serving small and medium enterprises as a driver for inclusion, TSFE’s CEO Ayman Soliman said in the joint statement.
