Italian banking group Intesa Sanpaolo is negotiating with the Egyptian government to acquire its remaining 20 percent stake in Alexbank, said Marco Elio Rottigni, head of the International Subsidiary Banks Division.
Intesa Sanpaolo plans to inject more investments in Egypt and expand in financing small and medium projects (SMEs), Rottigni said in a press release on Wednesday.
Rottigni did not reveal the value of the group’s offer to Egypt or its intended investments.
The reported negotiations come as Egypt is offering stakes in 35 state-owned companies to strategic investors through 2024. This program has collected $5 billion, with another $5 billion in deals in the pipeline.
In October 2006, Sanpaolo acquired 80 percent of Alexbank’s issued capital.
In January 2007, SanPaolo merged with the Banca Intesa to become Intesa SanPaolo.
Alexbank’s current total capital amounts to EGP 5 billion ($161.8 million).
Alexbank, which was established in 1957 as a state-owned commercial bank, operates 175 branches across the country, employs over 4,200 individuals, and serves a customer base of 1.6 million, according to the bank’s website.
Intesa Sanpaolo
The Intesa Sanpaolo Group is one of the top banking groups in Europe with 45.2 billion euros of market capitalization.
It is a leading bank in Italy in all business areas including retail, corporate, and wealth management.
The Intesa Sanpaolo Group offers its services to 13.6 million customers through a network of approximately 3,400 branches in the country.
Source: Ahram Online