The acquisition of the 69.3% of the share capital of Egyptian Commercial Bank (ECB) by Piraeus Bank was completed yesterday. Piraeus Bank Group, thus, enhances its international operations in developing countries by entering the Egyptian market.
With the completion of the public offer, which had started at the beginning of June, Piraeus Bank obtained control of Egyptian Commercial Bank at an acquisition price of approximately Euro 19mn, or, EGP 20 per share. ECB will proceed to a capital increase of Euro 47 mn by the end of July, in order to comply with the new rules of the Central Bank of Egypt.
Egyptian Commercial Bank was established in Cairo in 1978 and currently operates through 18 branches well spread around the country (Alexandria, Al Alamayn, Hurgada, etc.). The number of branches is planned to increase to 25 by year end. ECB employs 560 people, its total assets in December 2004 amounted to Euro 437 mn, customer deposits to Euro 400 mn and net loans to customers were Euro 196 mn. It has been assigned a BB long term rating by Fitch.
By entering the Egyptian market, Piraeus Bank implements its expansion strategy in markets which present significant growth potential and enhances its operations in the East-Mediterranean basin.