Emirates NBD to Acquire Stake in Egypt’s Banque du Caire as Part of Privatization Efforts
Emirates NBD is set to acquire a stake in Egypt’s Banque du Caire, with government support for a swift transaction. This move is part of broader economic reforms and privatization efforts in Egypt, seeking to reduce state involvement in the economy. The potential sale has drawn public attention and controversy regarding transparency in the process.
Emirates NBD has obtained approval from the Central Bank of Egypt to initiate due diligence for acquiring a stake in Banque du Caire, a transaction estimated to exceed USD 1 billion (EGP 50 billion). This information was revealed by two sources familiar with the matter to Asharq Business. The swift completion of this deal is expected within six weeks due to the government’s strong support.
This acquisition aligns with Egypt’s efforts to privatize state-owned assets and reflects broader economic reforms linked to the International Monetary Fund (IMF) program. Recently, the IMF urged Egypt to adopt a new economic model that diminishes the state’s role in the economy.
Controversy surrounds the potential transaction, as no official statement has been released yet. Notably, television host Amr Adib indicated, “Selling the bank in secret is nearly impossible. We’ll soon find out who’s trying to buy it and what their offer is,” adding, “We’ve been trying to sell it since the ‘90s.”
Banque du Caire, state-owned and under Banque Misr, had assets totaling USD 9.4 billion (EGP 478 billion) as of last September. Banque Misr aims to sell a 45 percent stake in Banque du Caire for as much as USD 1.2 billion (EGP 60 billion), with future plans to list additional shares on the Egyptian stock exchange.
The acceleration of Egypt’s privatization efforts is pivotal for enhancing economic productivity, attracting foreign investments, and alleviating pressure on public finances. In a televised conference, Prime Minister Mostafa Madbouly disclosed plans to offload shares in at least ten government-owned firms by 2025, which includes four military-owned entities.
Emirates NBD’s prospective acquisition of a stake in Banque du Caire illustrates Egypt’s commitment to privatization and economic reform, particularly under the guidelines of the IMF. The swift governmental support for the deal emphasizes the urgency in finalizing the transaction, which could result in significant financial implications for both banks and the Egyptian economy. The anticipated public insight into the sale further highlights ongoing public interest and scrutiny surrounding state asset privatization efforts.
Original Source: egyptianstreets.com
