According to Bloomberg, the PIF is almost done with its due diligence on the transaction and plans to purchase the bank through its Egypt-based investment vehicle
Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is in advanced talks to acquire Egypt’s state-owned United Bank, possibly closing the deal as soon as the end of this month, reported Bloomberg which cited sources with knowledge on the matter.
According to Bloomberg, the PIF is almost done with its due diligence on the transaction and plans to purchase the bank through its Egypt-based investment vehicle, the Saudi Egyptian Investment Company.
The deal is estimated to be around $600 million as Saudi Arabia expands its support and investments in Egypt
The sources stated that final terms are still being agreed upon, however, the deal could close within December.
Saudi Arabia has pledged $10 billion worth of investments in sectors such as health care, education, and agriculture, and has deposited $5 billion into Egypt’s central bank.
Through its local investment arm, the fund has acquired state-owned stakes in 4 publicly listed Egyptian companies worth $1.3 billion and a stake in local consumer electronics retailer B.Tech.
Saudi Finance Minister Mohammed Al Jadaan previously said the kingdom has started “investing aggressively in Egypt” and will continue “to look at investment opportunities and that is more important than deposits. Deposits can be pulled but investments stay”.
