Published: January 21, 2010
Egyptian institution offloads holding in Lebanese bank for US$913mn.
EFG Hermes, an Egyptian investment bank, has sold its stake in Lebanon’s Bank Audi, held in shares and global depositary receipts, to a group of investors for US$913.4mn. The individual buyers have not been identified.
In a statement, EFG Hermes said that it had held “lengthy” discussions with Bank Audi about merging the two banks. But it added that “it became evident, after the events of 2008, that an amalgamation in the near future will be difficult”. “With one investment, without control, representing over 50% of our adjusted book value, it became clear that a divestiture should be considered,” the statement said.
The deal gives EFG Hermes an unconsolidated capital gain of US$260mn.
The bank confirmed last week that it was in talks about a sale of its stake.