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Banque Misr Acquires Strategic Stake in the Capital of CI Capital Holding for Investments, Strengthens its Presence in the Domain of Non-Banking Financial Services
13/08/2020

 

Banque Misr – the second largest bank in Egypt – has completed the acquisition of 9% of the shares of CI Capital Holding for Investments (Reuter’s Code – CICH.CA), thus increasing Banque’s Misr total stake in the company’s capital to 24.70%.

CI Capital Holding for Investments is considered a pioneer in non-banking financial services, providing a suite of financial non-banking solutions that fulfil the needs of a large segment of customers. Through this acquisition, Banque Misr has now become the company’s largest shareholder.

Commenting on the deal, Mr. Mohamed El-Etreby – Banque Misr’s Chairman of the Board stated, “We are pleased with this strategic contribution in the capital of CI Capital Holding for Investments, due to its pioneering status amongst investment banks, securities brokerages, research firms, asset management, custodianship, financial leasing and micro financing. This is yet another step in our strategy towards developing our non-banking financial services business, thus enabling us to accommodate the financing needs of our customers. We are fully confident that our partnership with CI Capital Holding for Investments and its management will support future growth and maximize value for all parties involved.”

On his part, Mr. Akef El Maghraby – Banque Misr’s Vice Chairman of the Board – stated, “In our capacity as one of the largest investors in the country – at more than EGP 60 billion in managed assets through direct investments and financial portfolios – we foresee a favorable opportunity for collaboration with CI Capital Holding for Investments. Moreover, the size of Banque Misr and its geographical outreach will strongly drive the Company’s expansion into non-banking financial activities such as micro finance, financial leasing, consumption leasing and real estate mortgage loans.”

Commenting, Mr. Mahmoud Atallah – CI Capital’s Chairman of the Board and Group Managing Director – stated, “The presence of Banque Misr as a key shareholder in CI Capital certainly constitutes a valuable addition to the Company, since the potential benefits to be reaped will contribute to accelerating the already swift rate of the Group’s development, while creating more potential opportunities.”

Mr. Hazem Badran and Mr. Tarek Tantawi – CEOs of CI Capital – stated, “We are pleased with Banque Misr’s participation as a key Group shareholder, owing to its distinguished status in Egypt and regional markets, as well as its robust financial solvency, which is bound to drive the Group’s development in all sectors. We look forward to future collaboration with the Bank’s Management in various domains.”

Worth noting is that Zulficar and Partners assumed the role of financial advisor for the acquisition.

 

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