With more than 22 years of experience in the banking sector, Seif El-Din has served in several banks including National Société Générale Bank – sold in 2012 to Qatar National Bank –, Misr International Bank, Union National Bank and the Bank of Alexandria.
As a reminder, the new owners of aiBANK completed its acquisition in November 2021. In detail, EFG Hermes Holding now owns 51% of the bank’s capital, compared to 25% for TSFE Financial Services & Fintech Subfund, a compartment entirely owned by the Sovereign Fund of Egypt, partner of EFG Hermes. The bank also increased its capital to 5 billion EGP (US$320 million).
“The completion of the acquisition of a majority stake in aiBANK should be seen as another step towards building a business model capable of withstanding the cyclicality of capital markets and increasing the potential for creating synergies. across the platform,” said Karim Awad, CEO of EFG Hermes Holding.
The transaction was to see EFG Hermes Holding assume control of aiBANK, with TSFE Financial Services & Fintech Subfund, a subfund fully owned by the Sovereign Fund of Egypt, EFG Hermes Holding’s valued partner, acquiring a 25% stake.
The full acquisition came months after The Sovereign Fund of Egypt (TSFE) and EFG Hermes agreed to acquire 76% of the capital of Arab Investment Bank (AIB) and the transaction is expected to close in the third quarter of 2021.
The acquisition was structured as a capital increase that will increase the paid-in capital of the Bank to EGP 5 billion (US$319m), making it compliant with the regulatory requirements of the Egyptian Banking Law.
Under the terms of the agreement, EFG Hermes was to subscribe to 423 million newly issued shares of the Bank at a price per share of EGP 6.03 (US$0.38) and a total value of EGP 2.55 billion (US$163m).
At the same time, TSFE was to subscribe to 207 million newly issued shares of the Bank at the same price per share, for a total value of EGP 1.25 billion (US$79.73m).
Following the execution of the capital increase, EFG Hermes was to become the largest shareholder of AIB with a stake of 51%, while TSFE will become the second-largest shareholder with 25%.