April 16 (Bloomberg) -- EFG-Hermes Holding SAE advanced the most in nine months after a newspaper reported that procedures to allow QInvest LLC to take over Egypt’s biggest investment bank will be completed this week.
The shares gained 4.7 percent, the most since July 2, to 11.11 Egyptian pounds at the close in Cairo on volume of 5.1 million shares, more than triple the three-month daily average. That takes the stock’s increase this month to 14 percent. EFG-Hermes was the biggest gainer in percentage terms on the benchmark EGX 30 Index, which climbed 0.4 percent.
The Al Borsa newspaper report, which cited Prime Minister Hisham Qandil, came as EFG-Hermes said today it’s waiting for a no-objection from the markets regulator to start transferring assets under the agreement’s terms. The company said last week that the deal may be at risk because it expires 12 months after its initial signing in May.
“The shares moved on speculation after the Prime Minister’s comments,” said Wafik Dawood, director of institutional sales at Mega Investments Securities. “There’s no sign of any development in the QInvest deal on the ground.”
Qandil’s spokesman, Alaa El-Hadidi, said by text message that he had “no information on that subject.”
The agreement, which will create an investment bank with operations in the Middle East, Africa, Turkey and Asia, is unlikely to expire before a decision is made, Ashraf El Sharkawy, head of the Egyptian Financial Supervisory Authority, was quoted in Al-Mal newspaper as saying this week. He didn’t respond to requests for comment today.
To contact the reporter on this story: Nadine Marroushi in Cairo at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org