Egypt set to decide on QInvest deal next week

Financial regulator will decide whether to approve plans for tie-up with EFG-Hermes
By Reuters
Wed 10 Oct 2012 05:33 PM

Egypt's financial regulator said on Wednesday it would decide next week on whether to approve plans by Egypt's biggest investment bank EFG-Hermes to tie up with Qatar's QInvest.

EFG-Hermes and QInvest sealed the agreement in May to hive off EFG-Hermes's investment banking business in a joint venture in which state-backed QInvest would hold a 60 percent stake.

"We will take our decision next week," Ashraf el-Sharkawy, chairman of the Egyptian Financial Supervisory Authority (EFSA), told Reuters, when asked if EFSA would approve the plan by EFG-Hermes and Qinvest for an investment bank.

He did not give further details.

In September, shareholders in EFG-Hermes reaffirmed their approval of the tie-up after demands by the regulator for more details were met.

EFSA had rejected decisions approved by shareholders in June because the firm had not clarified points including minority rights.

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