Sitting in the office is so yesterdayMay 27, 2015 4:49
Shares in Egyptian Bank EFG Hermes Climb on Qatari Deal
Shares in Egypt-based investment bank EFG Hermes rose on Monday following the announcement of an agreement with Qatar's QInvest to form a region-wide investment bank
May 7, 2012 3:27 by kippreport
Shares in Egypt-based investment bank EFG Hermes rose on Monday following the announcement of an agreement with Qatar’s QInvest to form a region-wide investment bank.
QInvest will control 60 percent of the new bank, which will be called EFG Hermes Qatar, and will provide $250 million to increase its capital.
Shares in EFG Hermes initially jumped more than 6 percent, prompting the stock exchange to suspend trading for exceeding the 5 percent limit. It dipped back when trading resumed, up 1.8 percent at 13.89 Egyptian pounds ($2.29) by 0938 GMT.
It was the most heavily traded stock in the early part of the session. Monday was the first day of trading since the deal was announced, after the stock was suspended on Sunday.
EFG has recommended a special dividend of four pounds per share to shareholders.
“The market is reacting positively to the four pounds dividend,” said Ahmed Abu Taleb of Pharos Securities. “The stock price (for the deal) was below market estimates but there might be a high discount due to the sensitive time and uncertainty Egypt is going through.”
EFG-Hermes will control the remaining 40 percent in the new venture and have the right to sell its shareholding for 1 billion pounds ($165 million) to QInvest at any time after 12 months but before 36 months from the signing.
(Reporting By Tamim Elyan; Editing by Greg Mahlich)