Daily News Egypt

Banque Misr to expand non-banking services, buy minority stake in CI Capital - Daily News Egypt

Advertising Area



Advertising Area

Banque Misr to expand non-banking services, buy minority stake in CI Capital

Bank to continue buying shares in CI Capital to bring its stake to 20-25%, say sources


Informed sources have told Daily News Egypt that Banque Misr is studying several scenarios to expand its non-banking financial services to integrate with its banking activities.

These include expanding the scope of services provided by its subsidiary Misr Capital, and investments through the purchase of stakes in non-banking financial services companies.

Banque Misr is also looking to purchase a 20% stake in CI Capital that would allow Banque Misr to benefit from the investment bank’s activities and non-banking financial services.

The sources suggest that Banque Misr would continue buying CI Capital shares on the Egyptian Exchange (EGX) to raise its stake in the company to the target ratio. This would occur without the bank having to submit a purchase offer as long as the prescribed percentage is a minority stake.

Banque Misr has so far purchased 30.4 million shares, worth a total of EGP 134m, to bring its stake in CI Capital to 6.22%, up from 2.42%. The average price per share in the deal was EGP 4.41.

CI Capital Holding for Financial Investment’s consolidated financial statements in the first quarter (Q1) of 2020 reported that its profits had declined to EGP 101.85m, down from EGP 122.95m in the first quarter of 2019.

The EGX management halted trading in CI Capital’s shares during last Tuesday’s session, following the circulation of Banque Misr’s intention to acquire a minority stake in the company.

Advertising Area

https://ww.dailynewssegypt.com/2020/06/22/banque-misr-to-expand-non-banking-services-buy-minority-stake-in-ci-capital/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe