HSBC Dubai Buys At Least 5% of EFG-Hermes: EGX

HSBC Middle East Dubia has acquired a stake of at least 5% in EFG Hermes (HRHO.CA), the Middle East’s biggest home-grown investment bank, the Egyptian Exchange (EGX) said on Tuesday.

Business at Cairo-based EFG was hit when a popular uprising ousted Egypt’s president last year, throwing the country’s economy into turmoil from which it has yet to recover.

EFG is folding its main investment banking business into a new joint venture with Qatar’s QInvest, giving it more resources to expand operations across the region.

HSBC’s purchase was disclosed in a regulatory filing with the EGX. It said HSBC paid an average of 10.15 Egyptian pounds ($1.68)per share for 32.3 million shares. EFG share closed at 10.93 pounds on Tuesday.