EFSA Suspends QInvest-Hermes Deal
Published Wednesday, 25 July 2012 15:16 | Written by Amwal Al Ghad
Egypt's financial regulator has suspended a joint venture deal between Egyptian investment bank EFG-Hermes (HRHO.CA) and Qatar's QInvest, approved by shareholders on June 2, the state news agency said on Wednesday.
"The Authority approved the assembly in form but refused it in terms of content, procedures and decisions," the Chairman of the Egyptian Financial Supervisory Authority (EFSA) Dr. Ashraf Al-Sharkawy was quoted as saying to the state news agency MENA.
EFSA rejected decisions made at EFG-Hermes' annual meeting last month because the firm did not clarify various points regarding the deal includingthe fate of minority rights after it is completed, MENA cited Sharkawy as saying.
EFG must provide the required information and re-convene the shareholder meeting so that procedures for the deal can be completed, MENA cited Sharkawy as saying.
The EFSA was not immediately available to comment. EFG said earlier this month that the tie-up between the bank and QInvest was legally binding and could only be reversed through legal action.
EFG and QInvest sealed an agreement in May to form a joint-venture, in which state-backed QInvest would hold 60 percent.