Egypt’s EFG Hermes gets go-ahead for Qatar deal

REUTERS

CAIRO EGYPT’S regulator has no objections to EFG Hermes’ plan to create a jointly-owned investment bank with QInvest of Qatar, the bank said on Monday.

EFG Hermes and QInvest agreed in May to hive off EFG Hermes’s investment banking business into a joint venture in which state-backed QInvest would hold a 60 percent stake.

EFG Hermes shareholders in September reaffirmed their approval of the tie-up after demands by the regulator for more details were met. EFSA had had rejected decisions approved by shareholders in June because the firm had not clarified points including minority rights.

“The Egyptian Financial Supervisory Authority certified, with no reservations ... (EFG Hermes’) Extraordinary General Meeting minutes that was held on Sunday September 16, 2012 to approve the company’s strategic alliance with QInvest,” EFG Hermes said in a statement.

The statement was sent to the Egyptian and London stock exchanges.

An spokeswoman for the Egyptian bank said no further approvals were needed from the Egyptian authorities.

The tie up between EFGHermes and Qinvest was thrown into doubt earlier this year when a group of MENA investors, which included Egyptian businessman Naguib Sawiris, operating under the consortium Planet IB, submitted a counter bid for 100 percent of EFG, offering Egyptian pound 13.5 per share. Planet IB’s CEO Ahmed El Houssieny had said in a statement that “the proposed acquisition keeps a flagship Egyptian multinational intact and prevents its breakup.” A previous report indicated Dubai Holding was part of the consortium Planet IB. However, a statement by Dubai Holding confirmed it had no involvement with the Planet IB consortium.

The company said in a statement: “Dubai Holding denies any association with the consortium Planet IB. Dubai Holding is not in any way part of this Group, nor has made any bids for EFGHermes.”

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