Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

EFG-Hermes Drops Most in 5 Months on QInvest Doubts: Cairo Mover

Don't Miss Out —
Follow us on:

April 22 (Bloomberg) -- EFG-Hermes Holding SAE fell the most in five months on speculation the planned takeover of Egypt’s largest investment bank by QInvest LLC may be scrapped.

Shares of the Cairo-based company fell 3.3 percent, the most since Nov. 25, to 10.46 Egyptian pounds at the close in Cairo. Trading volume rose to 78 percent above the stock’s three-month daily average. Egypt’s benchmark EGX 30 Index lost 0.7 percent, retreating for a second day.

An agreement signed last year allowing QInvest to become the majority shareholder in a company that will hold EFG-Hermes’s main business lines of brokerage, investment banking and asset management is set to expire on May 3. Prime Minister Hisham Qandil said April 16 the process for the deal would be completed within that week, according to financial daily Al Borsa.

“Sentiment has turned negative for the stock as it appears the deal might not go through,” Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities, said by phone. “Nothing has happened since the Prime Minister’s comments last week and we’re getting closer to the deadline.”

EFG-Hermes said April 16 it’s awaiting the go-ahead from Egypt’s capital markets regulator to start transferring assets to complete the deal. Terms of the deal include a 4 Egyptian-pound dividend per share once the transaction is done.

The shares have lost 5.9 percent since then, compared with a 1.5 percent slide for the EGX 30 Index.

To contact the reporter on this story: Ahmed A. Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.