CAIRO: The financial advisor for the sale of Banque Du Caire will be announced by the end of this month, said Mohamed Barakat, head of Banque Misr. He also announced the formation of a committee to follow up on the sale of the bank's shares. The committee has recently short-listed five financial institutions out of the 15 that submitted offers for the consultancy role. Formed by Prime Minister Ahmed Nazif, the committee comprises of representatives of the Ministries of Finance and Investment as well as of the Central Bank of Egypt, Banque Du Caire, and Banque Misr. According to Barakat, the financial advisor's role is to mainly evaluate the bank's shares as well as assess offers for the sale. The financial advisor will also launch a marketing campaign to promote the bank and raise the amount of bids. The Cabinet recently unveiled plans to put 80 percent of Egypt's third largest public-owned bank up for auction in six to nine months and float another 15 percent on the stock exchange no more than a year later, while its employees will hold the remaining 5 percent. The decision to sell the bank has sparked controversy from both opposition parties and the public in fear of selling the bank to a foreign entity that could afford the staggering LE 12-15 billion estimated sale value. The pending sale process has also ignited heat in the press which accused the government of gratuitously selling Egyptian assets to foreign institutions, putting public welfare at risk. In response, different government officials justified the sale by explaining that the bank was weighed down with deficit that bulks up to LE 12-14 billion, representing six times its entire capital. "It is in the public's interest to invest through an IPO, and the government seeks encouraging that sort of investment, Minister of Investment Mohmoud Mohielddin said earlier. "Through an IPO, citizens will have the chance to invest and gain revenues. In a bid to tackle public dismay, the government is reportedly looking into the possibility of increasing the stake offered to the public in the bank up to 40 percent. "The bid will be up to the maximum of 80 percent . and the IPO will not be less than 15 percent, clarified the minister revealing the possibility of increasing public stake.
