• EGY CB issued Circular re banks's ownership, mergers, divestures, acquisitions' rules.
• Document dated 2 May 2024, received from EGY CB 7 May, summarized on 13 May.

Overview

• Applicant for ownership shall submit the application to EGY CB at least 60 days before completing ownership of more than 10% of issued capital or
• Natural, legal persons, related parties with percentage exceeding 10% issued capital,
• Enumerated the cases in which shareholders must notify the EGY CB of any changes.
• Also enumerated the cases in which the banks shall notify the EGY CB of any changes.
• Specified the terms in which the EGY CB shall consider the applications submitted to him to study requests for ownership, mergers and divestures, acquisitions requests.
• Applicant submits application to obtain EGY CB approval after due diligence procedure.
• Banks concerned with merger and divesture process shall submit a request to EGY CB to obtain an initial procedure followed by application request to obtain a final approval.
• EGY CB board of directors shall issue its decision re this process within 60 days from the date of submitting the application amending the bylaws of merging or new bank.
• Listed additional merger and acquisitions' rules in case of alternative private insurance fund subject to the Law No. 64 of 1980 re alternative private social insurance systems