Egypt regulator to decide next week on EFG, QInvest tie-up

Reuters, Wednesday 10 Oct 2012

Watchdog is tight-lipped on whether it will approve investment banking tie-up

Egypt's financial regulator said on Wednesday it would decide next week on whether to approve plans by Egypt's biggest investment bank EFG-Hermes to tie up with Qatar's QInvest. 

EFG-Hermes and QInvest sealed the agreement in May to hive off EFG-Hermes's investment banking business in a joint venture in which state-backed QInvest would hold a 60 per cent stake.
"We will take our decision next week," Ashraf el-Sharkawy, chairman of the Egyptian Financial Supervisory Authority (EFSA), told Reuters, when asked if EFSA would approve the plan by EFG-Hermes and Qinvest for an investment bank.
He did not give further details.
In September, shareholders in EFG-Hermes reaffirmed their approval of the tie-up after demands by the regulator for more details were met.
EFSA had rejected decisions approved by shareholders in June because the firm had not clarified points including minority rights.
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