Banque Misr and Al Ahly Capital Holding (ACH), the investment arm of the National Bank of Egypt (NBE), jointly concluded an equity acquisition, equally split amongst the two, of a 40% stake in the International Business Associates Group (IBAG) for money transfer services, which is the agent of Western Union International in Egypt.
Mohamed El Etreby, Chairperson of Banque Misr, said that this partnership is a step towards merging the informal transfers sector into the banking sector and enhancing financial inclusion, in line with the directives of the Central Bank of Egypt.
Hisham Okasha, Chairperson of NBE and ACH, said that the deal comes in an endeavour to conduct financial transfers by official means, which contributes to increasing foreign exchange flows in general and money transfers.
Karim Saada, Managing Director of ACH, indicated that the company had previously invested in this field, in addition to the acquisition of Pharos Securities Brokerage.
Moreover, Jean-Claude Farah, President of Western Union’s Global Network, said that the IBAG is one of the most important and oldest strategic partners in Egypt, stressing that Western Union is proud of this solid partnership that is based on innovation and dedication to providing high-quality services and excellent solutions to customers in Egypt.
IBAG is the oldest agent of Western Union in Egypt, as it was established in 1995 and operates through its 38 branches. It provides distinguished service to more than 2 million outstanding customers, totalling 2.4 million transfers, valued at $1.3bn annually.
Zaki Hashem & Partners acted as the legal advisor for both Al Ahly Capital and Banque Misr, while Ernst & Young Company prepared studies for examinations of the due diligence and taxes. Misr Capital played the role of the financial advisor to Banque Misr and Yahya Qadri and Bahaa-Eldin Law Office in cooperation with BonelliErede served as legal advisors to the shareholders of IBAG.