Cairo, 25 September 2020: Intesa Sanpaolo, Italy’s leading banking group and majority owner of ALEXBANK, has completed the buyback of all ALEXBANK shares (less one share) held by the International Finance Cooperation (IFC), amounting to around 39 million shares or 9.75% of the bank’s total share capital. The operation restores Intesa Sanpaolo’s ownership in ALEXBANK to the original 80% (minus one share), for a consideration of about USD 162 million, underlining the Group’s commitment to the Egyptian market.
Intesa Sanpaolo acquired 80% of ALEXBANK’s shares in 2006, with the State maintaining a 20% stake through the Egyptian Ministry of Finance. In 2008, IFC purchased from Intesa Sanpaolo 9.75% of ALEXBANK’s share capital, reducing Intesa Sanpaolo’s stake to 70.25%.
At the time of the Share Purchase Agreement between Intesa Sanpaolo and IFC, the parties also agreed to terms whereby IFC maintained the right to sell the shares back to Intesa Sanpaolo. Based on price conditions established at the time of the agreement. IFC has decided to exercise its put option by reselling the shares to Intesa Sanpaolo.
ALEXBANK recently announced its financial results for the first half of 2020, reporting total assets of over EGP 103.8 bln (EUR 5.71 bln) * and net income of EGP 1.36 bln (EUR 75.36 mln). Client deposits stood at EGP 86.5 bln (EUR 4.75 bln) and loans at EGP 44.75 bln (EUR 2.46 bln).
*As per Egyptian standards - Rates as of June, 2020 (1 EU= 18.17 EGP)