Egypt's largest listed bank CIB said on Monday it had finalised the sale of a near 75 percent stake in its investment banking arm to a consortium of local and foreign investors in a deal worth EGP 710.2 million ($39.5 million).

 

Commercial International Bank (CIB) signed an agreement in December to sell the majority of its shares in CI Capital to a group of Egyptian and Gulf investors. It did not give the value of the deal at the time.

CIB said in a statement on Monday that CI Capital's market value totalled about 950 million pounds and that it had completed the transfer of 74.75 percent of the shares, retaining a minority stake of about 25 percent.

Shares in CIB were down 1.14 percent at 11:43 GMT.

Mahmoud Atallah, the chief executive of CI Capital, told Reuters a general assembly would be called in the next two weeks to appoint a new board.

Market sources have said they expect CIB to eventually offer its remaining shares on the stock exchange.

Atallah said the new board would decide what to do with the remaining shares.

CIB had been seeking buyers for its investment unit since a planned sale to Beltone Financial, agreed in February last year, failed to win regulatory approval.

Beltone Financial is owned by billionaire Naguib Sawiris' Orascom Telecom Media and Technology Holding, which is embroiled in a standoff with Egypt's financial regulator over its shareholding structure.

Sawiris had planned to merge CI Capital with Beltone Financial to create one of Egypt's largest investment firms

Source: Ahram online