New investors in the running for United Bank:Qatar Islamic Bank (QIB) and KuwaitFinance House completed their due diligence for United Bank in December, Asharq Business reports, citing sources it says are in the know. QIB seems to be better poised to acquire the central bank-owned lender as it seeks to enter the Egyptian market, according to one source.

Exchange rate discrepancy is still a sticking point: One of the potential bidders remains onthe fence about the acquisition due to difficulty calculating the exchange rate at which the transaction will be made, one of the sources said, pointing to the gap between the official and parallel market prices for the USD. The transaction could reportedly reel in the USD equivalent of EGP 22 bn, the source added, which is currently worth USD 712 mn at official exchange rates.

The sale has been brewing for years: The Central Bank of Egypt — which owns almost 100%of the bank — said it intended to sell the bank back in 2017, and it had appointed advisors for the sale before the COVID-19 pandemic put it on ice. The bank was listed in the lineup of state companies and assets earmarked for privatization in February 2023.

ICYMI: Talks with Saudi Arabia’s Public Investment Fund to acquire the bank — reportedlyfor USD 600 mn — fell through last year due to disagreements about how to value the lender amid exchange rate volatility, according to local media reports. The European Bank for Reconstruction and Development also voiced interest in acquiring stakes in the United Bank in addition to Banque du Caire.

Remember: Separate from Ras El Hekma’s USD 35 bn agreement, the government aims to raise some USD 6.5 bn through the privatization of state-owned companies and assets over the course of this year.

Advisors: The CBE last year tapped Barclays to join CI Capital as thefinancial advisors working on the sale.

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