EFG Hermes has completed all required documents for a merger deal with Qatari investment bank QInvest and submitted them to The Egyptian Exchange (EGX) management, said a report issued by the company’s audit committee, Thursday.
The report followed a discussion by the committee last Monday about progress on the partnership agreement, after being endorsed by EFG Hermes’ extraordinary general meeting (EGM), where the majority of shareholders accepted the merger with QInvest to form a new entity to be named EFG Hermes Qatar.
The Qatari partner will hold a 60% of stake, with EFG Hermes holding the rest.
In June 2012, QInvest the Qatari investment bank, had offered to acquire 60% EFG Hermes’ major activities in brokerage, research, asset management, investment banking and infrastructure investment, in addition to 60% of its $60m infrastructure fund for $250m.
In January, the Egyptian investment bank issued a statement blaming the government for delaying the deal with QInvest.
The statement said the deal was expected to be finalised before the end of 2012, and was pushed back due to a delay in obtaining governmental approval, adding that the company was in the process of obtaining the required authorisation to conclude the deal in the near future.
The government had said earlier that its approval required a number of additional procedures in order to preserve shareholders’ rights.
EFG Hermes’ shares rose by 3.35% to reach EGP 11.40 during EGX trading session on Thursday.
The committee announced details of EFG Hermes’ brokerage activity and the changes in its market shares in the fourth quarter of 2012; it also completed an audit of its asset management sector, and discussed changes in assets managed by the group, as well as the rationale for the changes.
The committee was informed of clients’ complaints that were not settled until the date of its meeting, confirming there were no major complaints, and deliberated the risk manager’s report about risks pertaining to projects run by the group, as well as revising contracts signed with insurance companies covering its activities.
Last week, The Egyptian Financial Supervisory Authority (EFSA) approved the offer presented by Qatar National Bank (QNB) to buy 100% of National Société Générale Bank (NSGB).