EFG-Hermes Drops Most in 5 Months on QInvest Doubts: Cairo Mover
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. (EGX30)
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