* CIB to sell 70-80 pct of investment bank arm CI Capital
* Deal likely to be completed "within hours" -source
* Talking to Gulf and local investors
(Adds CIB confirmation)
By Asma Alsharif and Ehab Farouk
CAIRO, Nov 30 Egypt's largest listed bank
Commercial International Bank (CIB) said it is in
talks with local and Gulf investors to sell a 70-80 percent
stake in its investment banking arm CI Capital.
Sources with knowledge of the discussions had earlier on
Wednesday told Reuters that CIB was close to finalising a deal,
which would see it sell the stake to a group of investors, who
would each hold a minority stake in CI Capital.
Banking sources estimated CI Capital's market value at near
1 billion Egyptian pounds ($56 million) and said CIB had been
seeking buyers for the investment bank after a sale to Beltone
Financial, agreed in February, fell through.
One source familiar with the deal said it was likely to be
completed "within hours".
CIB, in a statement on its website, said that a number of
prominent Egyptian and Gulf investors had expressed interest in
acquiring 70-80 percent of CI Capital. CIB would maintain the
remaining stake in the company.
"It is worthy to mention that the finalization of the
transaction will be subject to the outcome of the current
negotiations between the concerned parties and obtaining
necessary regulatory approvals," the bank said without giving
Shares in CIB jumped 3.95 percent to 69 pounds by 1330 GMT
(1530 local time).
The deal with Beltone Financial, part of billionaire Naguib
Sawiris's Orascom Telecom Media and Technology Holding
, collapsed after it failed to secure approval from the
Egyptian Financial Supervisory Authority due to issues relating
to Orascom's shareholding structure.
Sawiris said at the time that he planned to merge CI Capital
with Beltone Financial to create one of Egypt's largest
"CIB wants to sell its non-banking asset as CI Capital does
not generate much income for them ... I think this time the deal
will go through because the issues they faced that stopped the
first deal are no longer a factor," said Abu Bakr Emam, head of
research at financial firm Prime Holding.
Beltone's head of investor relations said on Wednesday that
his firm had no information about CI Capital's latest talks with
($1 = 17.7800 Egyptian pounds)
(Reporting by Asma Alsharif and Ehab Farouk; Writing by Ahmed
Aboulenein; Editing by Lin Noueihed and Susan Fenton)