Abraaj sells its stake in EFG-Hermes

Abraaj Capital has doubled its money after selling its stake in EFG-Hermes to Dubai Financial Group (DFG).

DFG, a member of Dubai Holding, is to acquire a 100% stake in Abraaj Egypt Ltd and Abraaj SPV 26 Ltd, which will give it a 24.62% stake in Egypt's EFG-Hermes.

The US$1.1 billion transaction makes DFG, through its offshore subsidiaries, the single largest shareholder in EFG-Hermes.

Abraaj originally paid $505m for its stake in the investment bank in July 2006, giving it a 118% profit on the transaction.

Arif Naqvi, executive vice chairman and CEO of Abraaj Capital, said in a statement: "We are proud to have been associated with what we believe is the best investment banking franchise in the region. During the past year and a half we have provided both strategic guidance and financial support during a transformative period fortifying the company in its quest to further consolidate its leading regional position.

"We are also confident that Dubai Financial, as a specialised investor in financial services, will be a great partner for EFG-Hermes during the next phase of regional growth."

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