Government to resume procedures for offering Banque du Caire in 4Q 2023

Government to resume procedures for offering Banque du Caire in 4Q 2023

The Egyptian government is preparing to resume the procedures for offering Banque du Caire during the coming period, after the sale of The United Bank, and is also studying using CI Capital and Hermes to manage the offering.

Informed sources revealed to Daily News Egypt that the Egyptian government is preparing to offer 49% of Banque du Caire on the Egyptian Exchange before the end of this year.

The sources added that the government began preparing the bank with an initial evaluation ranging between $550-600m and it is likely that the offering will take place during the fourth quarter of this year, explaining that the current evaluation decreased slightly from the last evaluation of the bank before the Coronavirus crisis, which amounted to about $700-750m.

The market is awaiting a decision on the steps to offer the bank, especially after the deadline granted by the Financial Regulatory Authority for listing in the stock exchange expired last March.

The sources indicated that it will re-consult the discussions with the offering managers during the coming period to finalize the offering procedures, and it is currently considering assigning the management of the offering to CI Capital along with EFG Hermes, which has been working on managing the offering for a long time, to work on the offering.

The sources added that they are awaiting the results of the promotional tour conducted by the managers of The United Bank offering to resume the procedures for offering Banque du Caire again, in addition to the offers of investors and the final evaluation of the sale of the bank.

In April 2022, in preparation for the offering, an ownership transfer deal was implemented on Banque du Caire shares through the mechanism of high-volume deals on the bank’s shares, with about 1.125 billion shares, at a value of about EGP 6.97bn.

Chairperson of Banque Misr, Mohamed El-Etreby, said at the time that the deal to return the ownership of Banque du Caire to Banque Misr in a deal worth EGP 7bn is merely a restructuring of Banque du Caire’s ownership to be under Banque Misr instead of Misr Capital for Investments.

Last January, the Securities Committee of the Egyptian Exchange decided to increase the authorized capital of Banque du Caire, from EGP 10bn to EGP 20bn.

In addition to listing the shares of the issued and paid-up capital of Banque du Caire from EGP 5.25bn to EGP 10bn with a cash increase of EGP 4.75bn distributed over 2.375 billion shares with a nominal value of EGP 2 per share.

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