EFG Hermes, TSFE starts due diligence on aiBank to buy majority stake

EFG Hermes, TSFE starts due diligence on aiBank to buy majority stake

EFG Hermes, TSFE starts due diligence on aiBank to buy majority stake

EFG Hermes and The Sovereign Fund of Egypt (TSFE) have received the Central Bank of Egypt (CBE) approval to conduct due diligence on the Arab Investment Bank (aiBank), in preparation for acquiring at least 76% of the aiBank's capital, mostly through a capital increase.

There is also the potential for the acquisition of secondary shares from the National Investment Bank (NIB), which is the aiBANK's current majority shareholder.

"In case the transaction is completed, EFG Hermes will have an ownership in the Bank of not less than 51%, while TSFE will get not less than 25%,“ a Wednesday statement read. "The remaining stake will continue to be held by the NIB and the Federation of Arab Republics.“

TSFE's CEO Ayman Soliman said, "The partnership with EFG Hermes comes as part of the Fund's strategy to cooperate with Egypt's private sector to invest in promising sectors and in particular financial services and FinTech.“

Soliman added, "I am a strong believer in the Egyptian banking sector, which continues to present strong growth opportunities for investors with great potential to compete and expand regionally and into Africa.“

Karim Awad, Group CEO of