Insurance firms to go on sale, as two bid for MIBank

12 August 2005
Four government-owned insurance companies are being prepared for privatisation, Investment Minister Mahmoud Mohieldin told MEED in Cairo on 27 July. The announcement comes as two bids were submitted to state-owned Banque Misrfor the acquisition of a majority stake in Misr International Bank (MIBank- MEED 10:6:05).

Misr Insurance Company, National Insurance Company, El-Chark Insuranceand Egyptian Reinsurance Companywill all go up for sale in the next 18 months and guidelines on the transaction would be issued within weeks, Mohieldin said. The sales are part of the government's plan to offload its holdings in public/private joint venture institutions as part of its privatisation programme.

Under the programme, two banks - Societe Generale and BNP Paribas- have submitted bids for a majority stake in MIBank. A decision on the winning bid is expected by the end of August.

Banque Misr and a number of private and institutional shareholders, including Misr Insurance, are preparing to sell a total of 67 per cent of shares in MIBank. Banque Misr has a 25.5 per cent shareholding in the bank, while other institutional shareholders together own about 32.25 per cent. Misr Insurance has a 3.25 per cent stake.

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