CBE plans to postpone United Bank, Bank du Caire IPOs

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Mon, 21 Aug 2017 - 10:58 GMT

BY

Mon, 21 Aug 2017 - 10:58 GMT

Central Bank of Egypt - File photo

Central Bank of Egypt - File photo

CAIRO – 21 August 2017: The Central Bank of Egypt (CBE) is studying delaying the sale of the United Bank of Egypt to a strategic investor and the Initial Public Offering (IPO) of 20 percent of Banque du Caire, CBE announced.

CBE assured that the technical studies are still in force, but it is considering the postponement of what was scheduled for 2017.

The sale of the United Bank is related to the restructuring process, the bank’s acting Chairman Ashraf Elkady told El Masry el-Youm Saturday, adding that the Egyptian Exchange (EGX) will finish the restructure of Banque du Caire and the Arab African International Bank first.

Tarek Fayed, Sub-Governor of Banking Supervision Unit at the CBE, highlighted that the IPO is connected to procedures and arrangements.

Fayed is nominated to chair Banque du Caire, as a part of the mobility process of the chairmen of the four mega banks in Egypt.

In February, the CBE Governor Tarek Amer announced the bank’s intention to offer its 99 percent stake in the United Bank for sale, adding that it was formed out of the merger of three failing banks which the Central Bank acquired in 2006.

Amer noted that the CBE has purchased the United Bank only to fix it.

In July, senior banking officials told Amwal Al Ghad that Egypt’s Central Bank has delayed plans to sell its stake in the United Bank until next year to give the lender time to improve its returns and attract a better offer

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