BIG PRIVATIZATION NEWS- CBE to sell almost half of its stake in AAIB: The Central Bank of Egypt (CBE) and Kuwait Investment Authority (KIA) have agreed on a divestment plan that will see each of them offloading a 20%-stake in AAIB, a source with first-hand knowledge of the transaction tells Enterprise. The sale, which is expected to wrap up in 2024, will be carried out via a private placement to a strategic investor and a stake sale on the EGX, our source said.

Remember: AAIB is on the government’s list of 35 state-owned companies earmarked for privatization. It owns one of the nation’s most-respected corporate banking franchises.

Who owns what? The CBE and the KIA each own a 49.37%-stake in AAIB, with the remaining 1.26% owned by unnamed “others,” according to the lender’s latest financial statements (pdf).

Advisors: The KIA plans to reappoint Citigroup as an advisor, while the CBE wants to tap JPMorgan, Arab World Press (AWP) reports, citing a Kuwaiti government document seen by the newswire. McKinsey had previously also prepared a study for AAIB’s shareholders, our source noted.

A committee is in the works: Both parties are set to form a joint committee to oversee the sale, according to AWP. The committee will reportedly include the chairman and managing director of AAIB along with a representative from the KIA and CBE.

The KIA started looking into divesting its stake in AAIB in 2020 when it appointed Citigroup as an advisor, our source said. Local media reported in April that the KIA was seeking to up its stake in AAIB to become the lender’s biggest shareholder.

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