Sovereign Fund of Egypt, Cairo, agreed to acquire a 25% stake in Arab Investment Bank.
The $12.7 billion sovereign wealth fund executed an agreement alongside EFG Hermes Holding, which will become the largest AIB shareholder with a stake of 51%, a Hermes news release said Thursday.
Sovereign Fund of Egypt will subscribe to 207 million newly issued shares of the bank at a share price of 6.03 Egyptian pounds (38 cents), for a total value of 1.25 billion Egyptian pounds, the news release said.
Current majority shareholder National Investment Bank will have a 24% stake following purchases from other minority shareholders, according to the news release.
The transaction, which was approved Wednesday by the Egyptian Cabinet, is still pending numerous conditions including final approval by the Central Bank of Egypt.
Officials at the sovereign wealth fund and EFG Hermes could not be immediately reached for further information.