Egypt approaches first significant stake sale since devaluation
Date
9/24/2024 3:52:41 AM
(MENAFN) Egypt is reportedly in advanced negotiations to sell its remaining stake in Alex Bank to the Italian private banking firm Intesa Sanpaolo, as stated by a news agency.
This transaction will mark the first significant asset sale following the currency devaluation in March.
Under the agreement, the Italian lender, which currently owns 80 percent of the Egypt-based bank, will acquire the remaining 20 percent to gain full ownership.
This development follows the government’s announcement of an initial list of 32 assets intended for investors in sectors including banking, energy, and real estate last year.
The government now aims to raise between USD2 billion and USD2.5 billion from asset sales by the end of the current financial year in June 2025.
A source informed Arab News that it has been confirmed internally that the prime minister will announce the deal related to the privatization of state assets in the upcoming weeks.
The source also noted that while discussions about the details are ongoing within the bank, they remain confidential until the official announcement.
Investors and the International Monetary Fund will closely monitor the transaction as an indication of Egypt’s new government’s commitment to a state-divestment program.
However, Bloomberg reported that the value of this deal is expected to be significantly lower than the USD625 million raised from a stake sale last year.
The North African nation is recovering from its most severe economic crisis in decades after permitting its currency to drop 40 percent against the dollar six months ago.
This decision prompted a new wave of funding pledges from the IMF and other sources, contributing to a global bailout package totaling approximately USD57 billion.
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