Banque Misr acquires all shares of Banque du Caire for US$373.4M

EGYPT – State-owned Bank Misr has carried out an ownership transfer transaction for fellow state-owned Banque du Caire in a deal valued at EGP 6.9 billion (US$ 373.37 million).

The deal was executed through BLOCK TRADING transaction, through which Bank Misr purchased 1.125 billion shares of Banque du Caire, according to EGX.

According to the statement, the share that Banque Misr purchased in Banque du Caire belongs to the share of Misr Capital Company.

Banque Misr confirmed that its acquisition of that stake came within the framework of the internal restructuring of Banque du Caire.

The bank was planned to be listed as part of the Egyptian government’s initial public offering (IPO) program, but the program was postponed as a result of COVID-19.

In 2021, the government resumed the IPO program by listing state-owned e-payment company ‘e-finance’ and plans to list army-affiliated companies before the end of 2022.

Net profits for Banque du Caire grew in 2021 by 15 percent – compared to 2020 – to post EGP 3.2 billion (US$173.16 million), while Bank Mist’s rose to EGP 21.4 billion (US$1.16 billion) in 2021, up from EGP 11 billion (US$595.23 million) recorded by the end of June 2020.

Bank Misr’s total assets were valued at EGP 1.4 trillion (US$75.76 billion) by the end of September 2021, with total deposits of EGP 1.1 trillion (US$59.52 billion).

Egyptian banks managed to weather the pandemic’s repercussions as they entered the crisis relatively well-capitalized with a small number of non-performing loans, according to the Banking Industry in Egypt 2021 report.

The pandemic also helped fuel significant growth in digital banking in a country where only about a third of the population is banked,” stated the report.

Experts say a new banking act, which was passed in 2020 and which increased capital requirements, could promote mergers and acquisitions while helping to boost financial inclusion.”

While bank profits have been affected by the slowdown in private lending, experts are hopeful that lending will pick up again, driven by the current record low-interest rates.

Since its establishment in 1920, Banque Misr has founded companies in various sectors, including textiles, insurance, transportation, airlines, entertainment, and Cinema.

The bank also owns a big share in 159 companies that work in financing, tourism, housing, agriculture, and food in addition to other companies in the communications and information technology sector.

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