Saudi Wealth Fund in talks to buy The United Bank for $600 million

The Public Investment Fund (PIF) is in “advanced talks” over for the acquisition of the state-owned United Bank for around USD 600 million, Bloomberg reports, citing sources with knowledge of the matter.

The $620 billion Public Investment Fund would carry out the acquisition through Saudi Egyptian Investment Co. unit, which it set up earlier this year to invest in swathes of Egypt’s economy.

An agreement may be finalized by as soon as this month, though final terms are still being agreed, the sources said. However representatives for the PIF declined to comment. Officials at Egypt’s central bank weren’t available to comment. 

The Central Bank of Egypt owns 99.9% of United Bank, which it created in 2006 through the merger of smaller entities near the end of its well-regarded cleanup of the banking sector nearly two decades ago.

A long time coming: In 2017, the CBE said it intended to sell the bank to a strategic investor and appointed EFG Hermes and New York’s Evercore to advise on the transaction, before the covid-19 pandemic put the sale on ice.

KSA extends its support for the North African nation through fresh investments: The PIF earlier this year acquired minority stakes in four EGX-listed companies through its newly established arm for Egyptian investments in August. The kingdom has pledged $10 billion of investments in sectors such as health care, education and agriculture. It already scooped up state-owned stakes in four Egyptian publicly-listed companies for $1.3 billion and deposited $5 billion in the country’s central bank

The United Bank, which was established in 2006, has 65 branches nationwide and more than 200 ATMs, according to its website.