The Commercial International Bank (CIB) approved the offer submitted by Orascom Telecom Media and Technology Holding (OTMT) to purchase 100% of the bank’s stake in CI Capital for a value of EGP 924m, OTMT announced Monday in a press release sent to the Egyptian Exchange (EGX).
The offer also permits a subsidiary of OTMT to acquire the stakes, it said, in an apparent reference to its subsidiary Beltone Financial. In November, OTMT acquired Beltone Financial in a deal worth EGP 650m. Business tycoon Naguib Sawiris has controlling stake in OTMT, owning 51.7% of the company’s shares.
OTMT’s intentions to acquire the investment bank were first reported in December 2015. Al Ahly capital expressed a written interest in making an offer for CI capital but did not make proceed in the acquisition process.
In 2015, Sawiris attempted to acquire a 20% stake in the investment bank EFG Hermes. However shareholders offered him less the half the shares he sought in the sale.
Capital market analysts expected the completion of the deal might positively impact the market and encourage investors to buy stocks.
CEO of CI capital Mahmoud Atallah previously announced the company is planning to have an initial public offering (IPO) for three companies in 2016. The companies were to be in the hotels, construction, and food sectors.
There has been no further information provided on whether the announced IPOs would take place after the OTMT deal.