Sawiris fails to acquire CI Capital

Beltone Financial Holding, owned by Egyptian billionaire Naguib Onsi Sawiris, announced on Thursday that it was unable to reach an agreement with Commercial International Bank (CIB) to purchase shares in CI Capital due to a failure to obtain the Egyptian Financial Supervisory Authority’s (EFSA) approval on time.

CIB said the delay of the Orascom Telecom Media and Technology Holding (OTOMT) offer, also owned by Sawiris, and the lack of an EFSA approval prompted it to not extend the contract and refund the advance to Beltone.

Beltone submitted a note of intent to take over 100 per cent of CIB shares in CI Capital earlier in February for EGP 900m ($104.05 million).

The two sides had already extended the deal five times to meet EFSA conditions, which were described by some as impossible to meet.

Sawiris said in an article published by state-owned Al Akhbar newspaper in March that his bid to acquire CI Capital was being held up by national security concerns and criticised state meddling in business that he said would put off investors.

“This gives a negative and harmful message to the investment climate, saying to investors be warned if you wish to invest in Egypt because the state will enter and compete with you using public funds,” he wrote.