Al Baraka Bank Egypt executed the share-swap leg of its mandatory tender offer for Al Tawfeeq Leasing Company. Investors tendered 273.722 million leasing-company shares. The exchange ratio was 0.1919 Al Baraka share for each Al Tawfeeq share. The offer provided no cash alternative.
The transaction followed approval from Egypt's Financial Regulatory Authority and an offer period on the Egyptian Exchange from 19 August to 16 September. The offer sought as much as 90% of Al Tawfeeq, subject to a minimum acceptance threshold of 51%. The bank used new shares issued through a capital increase to fund the exchange.
VALUATIONS SET THE EXCHANGE TERMS
The terms reflected a fair value of EGP26 for each Al Baraka Bank Egypt share and EGP4.988 for each Al Tawfeeq share, according to transaction reporting. Those valuations produced the 0.1919 exchange ratio used for tendering shareholders.
A legal adviser to the bank said the transaction was structured entirely as a share swap. The executed volume establishes a material acquisition milestone, although the sources reviewed did not state a final post-transaction ownership percentage.
INTEGRATION MOVES INTO FOCUS
The deal expands Al Baraka's exposure to leasing and related non-bank financial services in Egypt. It also ties the consideration to the bank's equity rather than requiring a cash outlay, leaving participating investors with shares in the combined banking group.
The next milestone is formal disclosure of the resulting ownership structure and any governance or operational changes at Al Tawfeeq. Until those filings appear, the completed swap volume should not be treated as confirmation that the maximum 90% target was reached.