EFG, QInvest ink investment bank deal
Cairo, May 5, 2012
EFG Hermes, the biggest investment bank in Egypt with a market value of $1.08 billion, said it had sealed an agreement first announced in March to form a region-wide investment bank with Qatar's Qinvest.
Under the agreement, Qinvest will control 60 per cent of the new bank, which will be called EFG Hermes Qatar, and provide $250 million to increase its capital, while EFG-Hermes will control the remaining 40 per cent.
According to EFG Hermes, the bank will have the right to sell its shareholding to QInvest at any time after 12 months but before 36 months from the signing for 1 billion Egyptian pounds ($165.4 million).
The alliance has "the aim of creating a leading investment bank with operations in the Arab world and beyond, comprehensively covering the Middle East, Africa, Turkey and South and South East Asia," said the top Egyptian bank which runs offices in nine Arab countries.
EFG Hermes will have to get approval from shareholders and regulators before the bank can be formed.
EFG Hermes, also controls a 65 per cent stake in privately-owned Lebanese bank Credit Libanais, which it bought in 2010 for $542 million.
QInvest, a leading investment bank in Qatar has a paid-up capital of $750 million and offices in Qatar, Turkey and Saudi Arabia, its website says. Its shareholders include Qatar Islamic Bank, other institutional investors and high net worth individuals.-Reuters
More Finance & Capital Market Stories
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO
- Du enters $1.17 billion financing deals