Egypt’s regulator approves QNB’S bid for NSGB

Citadel sees higher revenues from weak currency

CAIRO, Feb 25, (RTRS): Egypt’s financial regulator has approved an offer by Qatar National Bank (QNB) for National Societe Generale Bank, after requiring QNB to buy the whole company rather than the originally planned 77 percent stake.

QNB said in December it planned to buy the 77 percent stake in NSGB held by French bank Societe Generale.

Ashraf El Sharkawy, head of the Egyptian Financial Supervisory Authority, told Reuters by telephone that the regulator had approved the offer. “Yes. We obliged Qatar National Bank to present an offer for 100 percent,” he said.

QNB has offered 38.65 Egyptian pounds ($5.74) a share, compared with Sunday’s close of 37.52 pounds.

The tender offer to minority shareholders must be completed under Egyptian market rules.

QNB is 50 percent owned by the Qatar Investment Authority, the sovereign wealth fund which has led the bulk of the gas-rich Gulf state’s international acquisitions in recent years, including stakes in Barclays, carmaker Volkswagen and luxury store Harrods.

Also: DUBAI: Egypt’s Citadel Capital hopes to raise $300 million from divesting non- core assets within three years, its chairman said, predicting that some of its businesses would benefit from an export boom because of the weak Egyptian pound.

The pound has tumbled about 8 percent to record lows against the US dollar since late December, when the central bank softened its defence of the currency, which is under pressure because of the country’s political and economic turmoil.

Citadel, one of Africa’s largest investment firms managing $9.5 billion worth of assets, has stakes in companies which export over $300 million a year across different businesses, including food, founder and chairman Ahmed Heikal said in an interview on Monday.

“Currency devaluation is affecting our business positively. If you are investing in an exporter or import substitute, then you’ll benefit,” Heikal said.

“We expect that (exports) will be increased substantially rather than go down.”

Since the ouster of authoritarian president Hosni Mubarak in early 2011, Egypt’s transition to democracy has been plagued by conflict between Islamist and secular forces, disrupting the economy and leading to capital flight.