Billionaire's Investment Banking Foray Bets on Egypt Revival

Egyptian billionaire Naguib Sawiris expects his acquisition of two investment banks to pay off with the recovery of the country’s battered economy, allowing him to challenge EFG-Hermes’ dominance in the financial services’ industry.

Sawiris, in an interview in Cairo on Sunday, said he will complete the purchase of CI Capital Holding this month to create Egypt’s second-biggest investment bank. The 924 million Egyptian-pound deal ($118 million) is in "execution mode" after the share-purchase agreement was signed, he said, adding that he sees no regulatory objections. Shares of Orascom Telecom Media & Technology, Sawiris’ investment arm, advanced the most in six weeks.

The acquisition comes about four months after the company paid more than 600 million pounds for Beltone Financial Holding SAE, another Egyptian investment bank, even as the nation reels under a dollar shortage fueling speculation that policy makers will be forced to devalue the currency.

"There’s a major crisis in the economy," Sawiris said. "If you believe that when things get really bad, that’s when they start to get better, it’s the right time to" invest, he said. "The end game is definitely to create the largest player in Egypt."