QIB is out of the running for United Bank: The Qatar Islamic Bank (QIB) has backed out of the race to acquire Central Bank of Egypt-owned lender United Bank after the two parties failed to agree on a valuation for the bank, Shourouk News reports, citing an unnamed source it says is familiar with the matter. The Qatari bank submitted an offer of under USD 400 mn, the source added.

Remember: QIB and Kuwait Finance House (KFH) both completed their due diligence for United Bank in December. KFH has yet to submit an official offer for the bank.

How much is United Bank worth? Before the float of the EGP back in March, the transaction was set to reel in the USD equivalent of EGP 22 bn — pre-float that was the equivalent of USD 712 mn and at today’s exchange rate it’s the equivalent of USD 459 mn. Last year, the bank saw its net income rise 31% y-o-y to EGP 1.7 bn, while its assets saw a 19% y-o-y growth to record EGP 101 bn.

Years in the making: The central bank — which owns 99.9% of the bank — first announced its plan to sell the bank in 2017, but the Covid pandemic put the plans on ice. United Bank was also listed in the lineup of state companies and assets earmarked for privatization in the rebooted privatization program unveiled in February 2023.

ICYMI: Talks with Saudi Arabia’s Public Investment Fund to acquire the bank — reportedly for 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.

A listing on the EGX? The central bank is looking into offering United Bank on the EGX, the source said.

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