Commercial International Bank (Egypt) has agreed to sell its investment banking unit CI Capital Holding to Orascom Telecom and Media Technology (OTMT) Holding for EGP924m ($118m).
The offer is subject to signing an agreement on the final terms and conditions. Commercial International Bank (CIB) said it will move forward with the required process to complete the transaction.
Orascom Telecom intends to merge CI Capital with Beltone Financial, which it acquired last year.
OTMT’s intentions to buy the investment bank were first reported in December last year.
The three main business lines of CI Capital include investment banking, securities brokerage, and asset management. They are supported by a research department.
Last year, CI Capital acquired CIB’s stake in its affiliate company CORPLEASE for EGP133m ($16.9m).
CIB was established in 1975 as a joint venture between the National Bank of Egypt (51%) and the Chase Manhattan Bank (49%) under the name Chase National Bank of Egypt.
After Chase’s decision to sell its equity stake in 1987, National Bank of Egypt increased its shareholding to 99.9%, and the Bank changed its name to Commercial International Bank (Egypt).
National Bank of Egypt’s interest decreased through various public offerings till it reached 18.7%
For the fourth quarter of 2015, CIB reported a 11% rise in net income to EGP1.15bn ($146m), compared to EGP1.03bn ($131m) for the same period in 2014.
CIB acquired Citibank’s Egyptian retail portfolio in the fourth quarter, adding EGP1.1bn ($140m) in loans and EGP1.4bn ($178m) in deposits.
Image: OTMT’s binding offer for CI Capital is subject to signing an agreement on the final terms and conditions. Photo: courtesy of Stuart Miles/FreeDigitalPhotos.net.