Al Baraka Bank Egypt, a prominent Sharia-compliant commercial bank, is moving ahead with its acquisition of a major stake in Egyptian Exchange-listed Al Tawfeek Leasing Company (A.T. Lease) through a share-swap transaction that will see the lender issue new shares to participating shareholders.

The Egyptian Exchange announced that 273.722 million A.T. Lease shares were tendered under the mandatory purchase offer, with shareholders receiving 0.1919 newly issued Al Baraka Bank Egypt shares for every A.T. Lease share.

Al Baraka Bank targets up to 90% of A.T. Lease

The transaction follows Al Baraka Bank Egypt’s mandatory tender offer to acquire up to 329.472 million shares in A.T. Lease, equivalent to as much as 90% of the leasing company’s share capital, subject to a minimum acceptance threshold of 51%.

The offer was structured entirely as a share swap, with no cash alternative. It was approved by Egypt’s Financial Regulatory Authority and ran on the Egyptian Exchange from August 19 to September 16, 2026.

Under the agreed terms, the exchange ratio was set at 0.1919 Al Baraka Bank Egypt shares for each A.T. Lease share tendered. The ratio was based on independent fair values of EGP26 ($0.5) per Al Baraka Bank Egypt share and EGP4.988 ($0.09) per A.T. Lease share.

Forvis Mazars study supports transaction

Earlier in September, Arab Moltaqa Investments Company’s board approved the fair value study prepared by independent financial adviser Forvis Mazars in connection with Al Baraka Bank Egypt’s offer for A.T. Lease.

The study formed part of the process supporting the proposed share-swap transaction as the Egyptian banking group moved to consolidate its position in the leasing company.

The transaction represents a strategic expansion of Al Baraka Bank Egypt into the leasing business through its proposed acquisition of a controlling stake in A.T. Lease.

The acquisition is being implemented through the issuance of new Al Baraka Bank Egypt shares rather than a cash payment, allowing the transaction to be completed through an equity-based structure.

Deal expands Al Baraka Bank’s position in leasing

The Central Bank of Egypt approved the acquisition, while the transaction also marked the first capital increase by an Egyptian bank through a share swap, according to legal advisers involved in the deal.

With 273.722 million A.T. Lease shares tendered, the transaction has moved from the offer stage toward settlement, with the shares to be transferred through the Egyptian Exchange following completion of the required procedures.

The deal will strengthen Al Baraka Bank Egypt’s position in Egypt’s financial-services market while giving A.T. Lease shareholders an equity interest in the acquiring bank rather than a cash consideration.