The Egyptian public bank Banque Misr has increased its stake in its subsidiary Banque du Caire, which it will now control 100%.
Banque Misr, one of the oldest commercial banks established in Egypt, has strengthened its stake in Banque du Caire.
The Bank, which has been operating on the Egyptian market since 1920, acquired 1.1 billion shares of Banque du Caire at a price of 6.2 pounds per share. A total of 6.9 billion Egyptian pounds ($377.5 million) was disbursed by Banque Misr to increase its stake in the capital of its subsidiary, Banque du Caire, from 57.14 to 100%.
According to several Egyptian media, Banque Misr acquired shares in Banque du Caire from Misr Capital Company. The buyer indicated without further details that this operation is part of an internal restructuring process of Banque du Caire.
Already at the beginning of 2020, the Egyptian public bank Banque Misr was considering selling a stake of up to 45% of its subsidiary to foreign investors.
The operation was to result in an introduction of Banque du Caire on the Egyptian Stock Exchange. Two years later, this proposal ultimately failed, Banque Misr having chosen to maintain and even strengthen its control within its subsidiary.
Through this operation, the public capital establishment is strengthening itself in the Egyptian financial sector where it is already present through subsidiaries involved in different segments.