Egypt’s EFG Hermes sells stake in Lebanese bank for $913 million

EFG Hermes, Egypt's premier investment bank has sold its entire stake in Lebanon's Bank Audi for approximately $913 million, a statement submitted by EFG Hermes to the Egyptian Stock Exchange revealed.

''After lengthy discussions with Bank Audi regarding a combination of the two businesses, it became evident after the events of 2008, that an amalgamation in the near future will be difficult,'' the statement said.

Cairo-based EFG Hermes is the premier investment bank in the Arab world and is recognised as the region's market leader in securities brokerage, asset management, investment banking, private equity and research. The firm is listed on the Egyptian and London stock exchanges and its assets under management stood at over $5.3 billion as at September 2009.

EFG Hermes held around 28 per cent stake in Lebanon's Bank Audi through 7.55 million common shares (21.95 pre cent) and 2.48 million global depository receipts (5.7 per cent) as at November 2009.

"With an investment representing over 50 per cent of our adjusted book value, and no control, it became clear that a divestiture should be considered," the statement said.

EFG Hermes said in a separate statement that the shares in Bank Audi were sold at $91 apiece although it did not identify the buyers. It is believed that Bank Audi's existing shareholders as well as a number of other high net worth individuals and entities have invested in the stock, including Lebanon's M1 Group.