National Bank of Egypt to acquire minority in Aman for financial services by December: Sources

The price of the acquisition deal has not been disclosed

  
People and vehicles are seen in front of the National Bank of Egypt (NBE), also known as the Al Ahli Bank, in the Fifth Settlement districts of New Cairo

People and vehicles are seen in front of the National Bank of Egypt (NBE), also known as the Al Ahli Bank, in the Fifth Settlement districts of New Cairo

REUTERS/Amr Abdallah Dalsh

The National Bank of Egypt (NBE) is expected complete its acquisition of a minority stake in the Aman Holding for financial services by December 2020, sources have told Daily News Egypt.

The sources also revealed that Aman has decided against debuting on the Egyptian Exchange (EGX) as it had previously planned.

Earlier this month, the Board of Directors at Raya Holding for Financial Investments approved the NBE’s acquisition offer in Aman. This would see the bank acquire a stake of up to 24% in the company.

In a disclosure to the EGX at the time, Raya Holding’s board said that it had given its initial approval of the offer at its session on 10 November. The Board of Directors reviewed the fair value report for Aman’s share, prepared by Applet Financial Consulting.

The price of the acquisition deal has yet to be disclosed, with Raya saying that it is still in the final negotiations stage with the NBE. The discussions are focusing on detailed issues related to the process of selling the shares and their price.

Raya Holding directly and fully owns a 99.8% stake in Aman, according to the company’s disclosure.

On 6 January, Raya Holding announced the launch of Aman Holding, with capital of EGP 375m, as part of an internal restructuring process.

The restructuring process resulted in the inclusion of three companies in one integrated platform, collectively called Aman Holding for non-banking financial services.

The companies subject to restructuring include: Aman for E-Payment; Aman for Financial Services; and Aman for Microfinance.

© 2020 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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