Egypt's stocks were in the green on Wednesday as the country's financial regulator approved the Beltone-Sawiris bid to buy a 20 percent stake in Egyptian Financial Group Hermes.
The benchmark index EGX30 inched up 0.51 percent to register 8,439 points, while the broader index EGX70 also climbed 0.51 percent.
On Wednseay, the Egyptian Financial Supervisory Authority (EFSA) approved an offer made by Dutch-based New Egypt Investment fund, owned by Naguib Sawiris, and Beltone financial to buy a 20 percent share in the country's biggest investment bank Egyptian Financial Group Hermes (EFG-Hermes).
The bid is at LE16 a share, which would value the deal at LE1.8 billion, but EFG-Hermes announced that it's appointing HC securities as an Independent Financial Advisor (IFA) to discuss "the fair value of the stock and the fairness of the offer, upon its approval by EFSA, in order to help shareholders evaluate its attractiveness."
"Following a falling trend, stocks managed to rebound on the back of EFSA's announcement," Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities, told Ahram Online.
Daily stock turnover registered LE680 million.
Arab investors were net sellers to the tune of LE28.6 million, while non-Arab foreign investors were net buyers at LE22 million.
EFG-Hermes increased 2.33 percent to LE15.4 per share, Amer Group holding rose 2.99 percent to LE1.38 per share and Pioneers holding was up 1.95 percent to LE13 per share.
In the telecom sector, Orascom Telecom Media and Technology (OTMT) owned by Sawiris inched up 0.79 percent to LE1.27 per share.
Global Telecom Holding (GTH) and Telecom Egypt (TE) were also gainers, rising 1.29 percent to LE5.5 per share and 0.07 percent to LE13.59 per share respectively.
Real estate developer Palm Hills Development (PHD) holding remained unchanged at LE4.25 per share, while Talaat Moustafa Group Holding (TMG) inched up 0.67 percent to LE8.94 per share.
Six of October for Development and Investments Company (SODIC) declined 1.17 percent to LE33.43 per share.