EFG-Hermes Meeting Ratifies QInvest Deal, EGP 4/ Share Dividends

EFG-Hermes’ extraordinary shareholder meeting (ESM) has ratified QInvest acquisition deal.

As pursuant to the agreement, QInvest shall seize 60% of  EFG-Hermes Qatar’s capital  and 40% of EFG-Hermes Holding.

Moreover, EFG-Hermes’ ESM has approved dividends distribution of 4 Egyptian pounds a share after the acquisition comes into effect which is planned to be by Q3/2012.

The ESM has approved of  EFG-Hermes (HRHO)’s strategic partnership with Qatar’s QInvest by the forms of transferring Hermes’ stakes in sectors of brokerage, research, asset management, investment bank services and infrastructure investment to EFG-Hermes Qatar for $250 million pursuant to the agreement – Item (1).

The ESM has also approved transferring 60% of EFG-Hermes’ stakes in Seed Capital of the asset management business at market value to EFG-Hermes Qatar, pursuant to the agreement – Item (2).

The ESM had approved to make EFG-Hermes Holding to sell its entire 40% shareholding in the EFG-Hermes Qatar to QInvest at any time during the period between 12 to 36 months from signing of the transaction at a price of EGP 1,000m (c.US$165m). QInvest will have the right to acquire from EFG Hermes its entire 40% shareholding at any time during the period between 12 to 36 months from signing of the transaction at the higher of US$165m or fair market value at the time of the exercise subject to a cap.