Egypt United Bank Stake Sale Advances as Advisers Bid for Role

(Bloomberg) -- Egypt’s biggest investment banks, including EFG Hermes Holding Co. and CI Capital Holding, are vying to manage the sale of a stake in state-owned United Bank, a deal that may augur a new wave of private investment in the North African nation after years of upheaval.

Pharos Holding and HC Securities & Investment are also among “several” investment banks that have bid for the role, according to Egyptian central bank Governor Tarek Amer.

“We will decide in the coming weeks on the selected sell-side adviser,” which will eventually value the bank, he said in an interview in London.

The size of the share “depends on the value that the investor will bring to the market,” and could be either a majority stake or a minority stake with a management agreement, Amer said. One U.S. institution has expressed an interest in acquiring United, which is 99.9%-owned by the central bank, he said.

The years-long drive to sell part of United Bank could be a bellwether for investment prospects in the Arab world’s most populous country, which is seeking to draw in interest beyond its oil and gas industry. Egypt also plans to sell as much as 30% in Banque du Caire, another state-owned lender, via the stock exchange.

The timing of the United sale will depend on “what the advisers tell us,” Amer said. United, formed through a merger of three lenders in 2006, is the country’s third-largest state-owned lender in terms of paid-in capital, with 3.5 billion Egyptian pounds ($210 million), according to its website.

While the offering should be managed by local investment banks, they “can team up with international banks if they need to,” Amer said.

To contact the reporters on this story: Mirette Magdy in Cairo at mmagdy1@bloomberg.net;Alaa Shahine in Dubai at asalha@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Michael Gunn

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