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EFG Hermes increases capital by EGP 391.83m - Daily News Egypt

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EFG Hermes increases capital by EGP 391.83m

Increasing authorised capital from EGP 3.2bn to EGP 6bn has also been approved by EGX

EFG Hermes head office (Photo courtesy of EFG Hermes)
EFG Hermes head office
(Photo courtesy of EFG Hermes)

EFG Hermes’ request to the Egyptian Stock Exchange (EGX) for increasing issued capital, from EGP 2.867bn to EGP 3.3bn, has been approved, according to an EGX statement Wednesday.

The step marks a rise worth EGP 391.83m in the company’s capital, through distributing free stocks with 1.460 stock for every 10 stocks, financed from 2014 revenues.

Moreover, an increase in authorised capital from EGP 3.2bn to EGP 6bn has also been approved by the EGX.

This month, the company announced that EFG Hermes Securities Brokerage has been named “Best Middle East Broker” at the EMEA Finance Middle East Banking Awards 2014.

For over 30 years, EFG Hermes has provided companies with financial services, including investment banking, asset management, securities brokerage, research and private equity, operating in Egypt, the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Jordan and Lebanon.

EFG Hermes has reported EGP 538m in net profit on EGP 2.6bn in total revenues in 2014, with the figure representing the company’s highest net profit since 2010. In 2013, EFG Hermes, which is headquartered in Egypt, reported EGP 540m in net loss.

On a quarter-yearly basis, EFG Hermes registered in the fourth quarter (Q4) of 2014 net profit of EGP 131m out of EGP 702m in revenues, after tax and minority interest.

EFG Hermes faced an uncertain situation in June 2014, when business tycoon Naguib Sawiris allied with Beltone Financial in a bid to acquire 20% of Hermes. The total number of shares respondent to the purchase offer under the Sawiris-Beltone alliance amounted to only 54.4m of the total 114m shares, an EFG Hermes source said at the time. The source explained that over 90% of Hermes shareholders refused the purchase offer.

The Sawiris-Beltone alliance was conditional on the purchase of 20% of Hermes, or 114m shares as offered by shareholders. A request to amend the purchase offer was required if they wish to purchase only 9%, the total of what was offered by shareholders. The acquisition bid did not, however, proceed.


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