Egypt’s index for main listed stocks rebounded in early trading on Monday after the heavyweight Commercial International Bank (CIB) had a binding offer to sell 100 percent of its fully owned subsidiary investment bank CI Capital.
The market benchmark EGX70 moved up 0.82 percent to register at 5,800 points.
The offer, that is estimated at a value of EGP 924 million, is to be executed through Orascom Telecom Media and Technology (OTMT), which is owned by Egyptian business tycoon Naguib Sawiris or one of its subsidiaries, the company stated on the bourse website on Sunday.
Both shares CIB and OTMT are currently seeing gains of 1.15 percent and 1.85 percent to be traded at EGP 31.67 per share and EGP 0.55 per share respectively.
“Any acquisition or merger could revitalise the market as traders see them as ambitious signs for investments,” said Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce, expecting Sawiris to publicly offer the CIB’s investment bank once the buyout is completed in an attempt to improve the ailing financial sector.
Last year, Sawiris’s OTMT acquired Egypt-based financial services company Beltone in a transaction valued at EGP 650 million.