Egypt and Kuwait agree on a path to exit their entire stakes in AAIB

A recent Kuwaiti government document revealed that Kuwaiti General Investment Authority agreed with the Central Bank of Egypt on a joint path to exit their stakes in Arab African International Bank, according to Al Arabiya website.  

The document added that the path includes forming a committee to oversee the process, consisting of a representative from the Authority and another from the Central Bank of Egypt, with the membership of the Chairman of the Board of Directors of the Arab African International Bank and the Vice Chairman of the Board of Directors and the Managing Director of the Bank.  

The document did not reveal the date of the agreement, according to Arab World News Agency, but it mentioned that the agreed path included re-assigning Citigroup as a financial advisor to update a previous study conducted for the benefit of the Authority on the exit process, including determining the fair value and the optimal method and timing for the exit.  

The document also indicated that the Central Bank of Egypt requested to solicit an offer from J.P. Morgan Group as well, in addition to Citigroup, to ensure more competitiveness among the applicants, which the Authority agreed to.  

The two parties agreed to start marketing the stakes of the Authority and the Central Bank of Egypt in the bank according to the mechanisms that will be adopted based on the outputs of the study.  

It is worth noting that Egypt listed Arab African International Bank among a list of planned offerings for government banks, including the United Bank and Banque du caire.  

Arab African International Bank was established in 1964 by a special law as a partnership between the Egyptian and Kuwaiti governments, and it provides services ranging from corporate services and retail banking services to investment banking services.  

The bank is owned by 49.36% by Equity Holding Company, an Egyptian joint stock company wholly owned by Kuwaiti General Investment Authority, which is the Kuwaiti sovereign wealth fund, and the Central Bank of Egypt owns a similar stake.  

The document indicated that the Central Bank of Egypt had previously offered to buy the Authority's stake in Arab African International Bank, but the deal was not completed, which prompted it to search for a strategic investor to buy its stake in the bank.