Egypt’s Financial Regulatory Authority (FRA) has announced that Banque Misr submitted a draft mandatory tender offer (MTO) to acquire a controlling stake in CI Capital Holding Company.
Banque Misr submitted an offer to acquire up to 652,800 shares in CI Capital, according to a statement to the Egyptian Exchange (EGX) on Wednesday. Although the offer is still under the FRA’s consideration, the statement added that, once approved, it will mean that the bank will top up its stake to 90% at EGP 4.7 per share.
The news of Banque Misr’s intention to acquire further shares in CI Capital was reflected in the company’s stock performance upon re-trading, which rose to its highest level in eight months (since last June).
The bank already owns a 24.7% stake in CI Capital, with the deal potentially leading to Banque Misr’s almost 100% ownership of the financial services group.
It owns assets under management of EGP 25bn, while CI Capital has assets under management of about EGP 10bn for its asset management activity alone. This means that the acquisition may result in total assets under management of up to EGP 35bn.
During the first nine months (9M) of 2020, CI Capital’s net profits reached EGP 330.77m, reflecting a downturn of 13% year-on-year (y-o-y) from EGP 381.06m, including minority shareholders’ rights.