3 local banks operating in Egypt have started due diligence procedures on the United Bank, which is owned by the Central Bank of Egypt, according to two sources familiar with the bank sale deal, who spoke to East Economy on condition that their names not be published.
The United Bank is one of the Egyptian banks that the government, which is burdened with a dollar liquidity crisis, is working to get out of, as part of a plan to sell more than 32 state-owned companies, by offering them on the stock exchange, or selling shares to strategic investors, or both.
One of the two people familiar with the file told “East Economy” that the banks that started the due diligence on the “United Bank” are: “Mashreq Bank”, “Credit Agricole” bank, and “Al-Ahli Bank of Kuwait”.
The three banks did not respond to requests from East Economy for comment, and officials at the Central Bank of Egypt did not respond to requests for comment either.
Later on Monday, the “Credit Agricole Egypt” bank denied its progress to start due diligence examination procedures within the acquisition of The United Bank, in a disclosure to the Egyptian Stock Exchange.
Last May, the Central Bank of Egypt appointed Barclays Bank as an international financial advisor, along with the local financial advisor, CI Capital, to finalize its exit from its stake in The United Bank, which has assets of EGP 60 billion.
The exchange rate was an obstacle to the completion of the Saudi Public Investment Fund’s acquisition of The United Bank at the end of last year, as the fund wanted to evaluate the bank in Egyptian pounds, provided that the value of the deal be determined in dollars upon transfer of ownership, while the Central Bank preferred evaluation in dollars only.
According to his website; The United Bank, which was established in 2006, has 65 branches nationwide and more than 200 ATMs.
2023-08-21 15:59:56
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