Egyptian Businessman Naguib Sawiris is close to acquire investment bank CI Capital through Beltone Financial Holding Company owned by Orascom Telecom Media and Technology (OTMT).
The deal will return Sawiris to CI Capital again, which is worth approximately EGP 1bn. He had exited CI Capital, where he shared his stakes in Dynamic Company.
The Egyptian Stock Exchange is witnessing violent turbulences and this deal opens the way to create a large investment bank, including Beltone assets and CI Capital, supported by a large liquidity in OTMT.
OTMT, of which Sawiris has 51.7% of its shares, acquired Belton international last month with a deal worth EGP 650m and had a large liquidity of EGP 1.9bn.
Sources told Daily News Egypt the plan is being implemented of Commercial International Bank (CIB) selling CI Capital amid its plan to exit from investments, where it has achieved its targets.
According to the plan, the bank exited the Commercial International Lifer Insurance Company (CIL) because investments will exit when it finds more suitable offers. CIB exited CIL with its share of 45% for €88m. The bank owns 99.9% of the shares of CI Capital Holding Co. The company’s capital has EGP 550m distributed on 55 million shares.
The company enjoys a special position amongst investment banks sector in Egypt, followed by four subsidiary companies operating in security brokerage, asset management, and investment banking.
The two brokerage companies are CI Securities Brokerage and Dynamic Brokerage Company among other subsidiary companies.
CI Capital also holds CI Assets Management (CIAM), which is managing assets worth EGP 10bn, eight funds of which amounting investments of EGP 6bn, while EGP 2bn are fixed income, and two equity funds. It also holds three monetary funds, one of which is Islamic and one capital protection fund.
Beltone Financial manages a volume of assets worth EGP 32.3bn through funds and portfolios exceeding 15 funds, according to the company’s latest statistics. These funds vary between equity, fixed income, portfolios, saving, and retirement plans. Beltone holds several sub assets including, Beltone Investment Banking, Beltone Asset Management, Beltone Securities Holding, and Beltone Administration Company.
Over the first nine months of 2015, IC Capital and Beltone Financial acquired 26.7% of the brokerage activity in Egypt, against 14.2% achieved by EFG Hermes.