Cabinet Approves Sovereign Fund, Hermes Acquisition of AIB

The Egyptian cabinet approved on Wednesday the the Sovereign Fund of Egypt and EFG Hermes' acquisition of state-owned Arab Investment Bank (AIB).

Hermes, which is Egypt’s biggest investment bank will acquire 51% of AIB and the Sovereign Fund will also acquire a 25% stake in AIB, while the state-owned National Investment Bank will keep 24%.

Following the acquisition, AIB’s capital will be boosted to EGP 5 billion.

In 2004, the government began selling its stakes in banks, and in 2006 it sold most of the Bank of Alexandria shares to the Italian bank Sanpaolo IMI.

The central bank of Egypt (CBE) said it plans to sell shares in several banks, including Banque du Caire, yet, deals were put on hold due to pandemic.