CIB’s chairman reveals details of acquisition of Kenyan bank



Tue, 28 Apr 2020 - 03:12 GMT


Tue, 28 Apr 2020 - 03:12 GMT

Amr Abdallah Dalsh - CIB headquarters - REUTERS

Amr Abdallah Dalsh - CIB headquarters - REUTERS

CAIRO – 28 April 2020: Chairman and Managing Director of Commercial International Bank (CIB) Hisham Ezz al-Arab revealed the details of CIB’s acquisition of the Kenyan bank, Bank Mayfair (CIB Bank Mayfair), explaining that the Kenyan bank is newly established; it was established 3 years ago and has five branches.

Ezz al-Arab added, during a phone call to Al-Arabiya TV, that CIB administration wasn’t targeting to acquire a large bank, but aimed at acquiring a bank where it can make a change in it, especially since the central bank in the Kenyan market decided not to issue licenses to new banks.

He explained that the acquisition process did not take place through the purchase of shares, but rather by increasing the capital in the bank as the strategy depends on pumping money to serve growth in the future. Ezz al-Arab further clarified that the shareholders within the Kenyan bank agreed on matters related to governance, the role of the Board of Directors and the risks, stressing that the agreement is based on mutual benefit.

“We aim to learn from the Kenyan market as it is a developed market for financial inclusion,” he noted.

Ezz al-Arab indicated that the Kenyan bank will also benefit from the strength and history of the Commercial International Bank, stressing that what happened is more of an integration than an acquisition process, in addition to that Kenya serves closed countries such as Ethiopia and Uganda.

He also announced that the Commercial Bank opened a representation office in Addis Ababa.

"We seek to obtain medical experience in the African market as it is a very promising market. Africa is one of the continents that witnessed the highest growth rates in the world before the coronavirus crisis," he said.

CIB’s chairman also pointed out that the coordination between Egypt and the African countries encouraged us to expand within the African continent.

He stressed on focusing on a majority stake in the bank and contributing to the Egyptian and Kenyan economies to gain experiences that would help to the bank enter other markets, affirming that the non-financial sectors do not occupy the bank during the coming period.

Regarding banking conditions inside Egypt, Ezz al-Arab explained that work is done in two ways, the first is through business that he expects to be better starting the second half of the year, and the second is through risk management, where there are sectors that stopped working, such as tourism, adding that risk management seeks to deal with the worst-case scenario, and operate in a modest manner

“No one can say for sure that the economy will return; the picture is still blurry, especially regarding the health sector and how to deal with the coronavirus,” he said.

CIB recently announced the completion of the acquisition deal for 51 percent of Bank Mayfair (CIB Bank Mayfair) after the approval of the boards of directors of both banks and obtaining all the necessary approvals from the competent regulatory authorities, most importantly the approval of the Egyptian and Kenyan central banks. The total value of the deal is $ 35.35 million, which will be used to increase the capital of Mayfair CIB Bank.



Leave a Comment

Be Social