Sources say Abu Dhabi Development Holding Co and Egypt's sovereign wealth fund are seeking to buy a combined stake in Banque du Caire
Abu Dhabi Development Holding Co and Egypt’s sovereign wealth fund are seeking to buy a combined stake in Banque du Caire as part of the state-owned lender’s initial public offering, according to two people familiar with the matter.
The people asked not to be identified because the discussions are private. The Egyptian fund’s chief executive officer, Ayman Soliman, earlier said it was in talks with Banque du Caire with a view to becoming a strategic investor in the IPO.
He didn’t give the name of the international firm also involved, but said an agreement may be reached by the end of March.
ADDH, which was established in 2018 as a public joint stock company and holds a portfolio of state-owned enterprises spanning utilities to health care, declined to comment.
Egypt and the United Arab Emirates last year agreed a $20 billion investment platform to put money into a range of sectors and assets. Egypt’s sovereign fund and ADDH are set to run it.
Banque du Caire wants to raise $500 million by offering a stake of 20-30 percent in the IPO that’ll take place by mid-April, Chairman Tarek Fayed said Wednesday in an interview. Anchor investors will be offered part of that stake, with a cap of about 5 percent each of the total ownership, he said.
The bank is in discussions with regional and foreign financial institutions and funds for the sale, Fayed said, declining to identify any of them. Banque du Caire is owned by Banque Misr, but run by an independent board.