EFG Hermes blames govt for delaying merger deal with QInvest

EFG Hermes blames govt for delaying merger deal with QInvest

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Sun, 27/01/2013 - 17:30

Egyptian investment bank EFG Hermes in a statement Sunday blamed the government for delaying a merger deal with the Qatari QInvest.

The deal was expected to be stricken before the end of last year, EFG Hermes said. However, a delay in obtaining governmental approval hampered the deal.

EFG Hermes added that it is in the process of obtaining approval to finalize the deal in the near future.

The government had said earlier that approving the deal requires several procedures to maintain shareholders’ rights.

A majority of shareholders last year accepted a strategic partnership with QInvest to form a new entity that would be called EFG Hermes Qatar. The Qatari group would hold a 60 percent stake in the company, while Hermes Holding would have 40 percent.

EFG Hermes’ shares jumped Sunday by 5.5 percent in mid-trading, reaching LE10.50.