Commercial International Bank (CIB), Egypt's largest listed company, said on Thursday it had received a LE1 billion ($127.7 million) offer from Orascom Telecom for its investment banking subsidiary CI Capital.
Orascom Telecom is a holding company with investments in media, technology and cable businesses but has more recently entered the energy, transport and logistics sectors. It is looking to broaden its focus to financial services.
CIB said in a statement on the stock exchange that its board would discuss the offer from Orascom Telecom and Technology (OTMT) at a meeting on Thursday.
Shares of OTMT jumped 11 percent on the news to reach 0.60 pounds at 0834 GMT. CIB shares rose 4.7 percent to hit 35.50 pounds.
OTMT is owned by Egyptian billionaire Naguib Sawiris, one of the country's most prominent businessmen and founder of the Free Egyptians political party, which made a strong performance in recent parliamentary elections.
Sawiris was not immediately available for comment.
If approved, the acquisition of CI Capital would mark OTMT's second major purchase in as many months and cements its recent foray into the financial services sector.
In November, OTMT and investment bank Act Financial bought 97.3 percent of Beltone Financial. They had originally sought to buy 100 percent of the financial services company for LE650 million .
Sawiris had previously tried to acquire EFG Hermes , the largest investment bank in the Middle East, through his New Egypt Investment Fund but the bid was unsuccessful.
