EFG Hermes shareholders to ratify a strategic alliance with Qinvest

  The shareholders of EFG Hermes S.A.E. Hold meeting today in Cairo in an extraordinary general meeting by an overwhelming majority, the strategic alliance with Qatar LLC with a majority of 86.9% of the votes cast Qinvest.
Shareholders accounted for 54.8% of the shares of the company and includes all primary shareholders of EFG Hermes, "including Abu Dhabi Investment Authority, Dubai Financial Group and HSBC Middle East.

The strategic alliance will EFG Hermes Qatar LLC is 60% owned and 40% Qinvest EFG Hermes belongs. After the completion of the transaction, EFG Hermes Qatar, through its subsidiaries offer a full range of investment banking, own and operate instead of investment banks, asset management, research and infrastructure fund company at the time of the meeting of EFG Hermes.

The shareholders approved the sale of the participation of all EFG Hermes, direct and indirect, of its branches. In the securities industry, research, asset management, investment banking, business and infrastructure funds, EFG Hermes for Qatar in exchange for $ 250 million

"The shareholders have agreed today sounding the vision of creating the ultimate investment bank in the Arab world, a platform from which we grow to comprehensively cover the center is East, Africa, Turkey, South and Southeast Asia," said EFG Hermes president Mona Zulficar. "This is a net positive for Egypt. Goal is to catalyze the next phase of growth for multinational Egyptian together with compensation of $ 250 million in foreign investment for our nation, it is also an important development for the Arab world, we provide a platform be that the company is growing far beyond our current borders. "

EFG Hermes, the transaction has been informed by the large international companies, including leading global consulting firm JP Morgan and Freshfields law firm Grant Thornton has been appointed as independent financial advisor. Preparing the report fair value for the Egyptian subsidiaries in this transaction

Participants at the Extraordinary General Meeting today approved in principle approved the distribution of EGP4 per share for shareholders of EFG Hermes. Following the completion of the transfer of ownership of subsidiaries EFG Hermes Qatar Any distribution is subject to the completion of the transaction and the regulatory approvals and special meeting of shareholders.

The shareholders approved the transfer of the equivalent of 60% of the total initial investment of EFG Hermes in a number of its managed fund Qinvest LLC injected into the market value of the last business day before the closing.

Under the terms of the transaction, transfers EFG Hermes "EFG Hermes" brand definitely EFG Hermes Qatar, effective in the year following the transfer of ownership of subsidiaries EFG Hermes Qatar. Shareholders have agreed in principle to change the name to be the company "Egyptian Financial Group" in this case.

Shareholders approved a "put" option EFG Hermes now offers Qinvest law, the remaining 40% of EFG Hermes EFG Hermes Qatar sell property for $ EGP1bn. Likewise Qinvest will "call" option, which includes the right to the remaining 40% of EFG Hermes EFG Hermes Qatar at a minimum price of $ 165 and to acquire at fair value in the execution of this fair value is subject to a price cap.