Egypt’s Beltone Offers to buy 20% Stake in EFG-Hermes

Egypt’s Beltone Financial’s board approved on Thursday cooperating with a group of investors in submitting a voluntary tender offer to market regulator for 20% stake, or 114.7 million shares in investment bank EFG-Hermes (HRHO.CA).

“The deal value is at EGP 1.835 bln with a price of EGP 16 per share,” Beltone said in a statement, adding that the stake will comprises local shares and/or GDRs. Beltone’s stake in the tender offer will represent 1.1% of the total shares in the target company.

Beltone (BTFH.CA) is one of Egypt’s leading financial institutions, with 17 subsidiaries specialized in investment, asset management, and underwriting.

It was reported earlier on Thursday that Beltone Financial and a group of investors including Egyptian billionaire Naguib Sawiris are seeking to acquire a 20 % stake in Egyptian investment bank EFG Hermes.

EFG Hermes is one of the biggest investment banks in the Middle East, and a deal to buy a major stake in it would be seen as a sign of revival in Egypt’s equity market after years of depressed activity since the 2011 revolution.