Amwal Al Ghad English - 2013-05-02 07:59:04
EFG-Hermes Holding SAE (HRHO.CA), Egypt’s largest investment bank, said it will sell assets and cut costs after an agreement to create the largest Arab investment bank with Qatar’s QInvest LLC collapsed because of regulatory delays.
The Cairo and Doha-based banks said late yesterday the planned joint venture ended after they reached a 12-month deadline without approval from the Egyptian Financial Services Authority. EFG will sell “non-core” assets and return most of the cash to shareholders as it seeks to cut costs by 35 percent.
“It will be hard for QInvest to build an investment banking platform that the EFG deal could have offered,” Jaap Meijer, Dubai-based director of equity research at Arqaam Capital, said yesterday in a telephone interview. “EFG will now try to protect its bottom line, while QInvest will probably focus on its key strength, which is commercial banking.”
QInvest, a unit of Qatar Islamic Bank, and EFG-Hermes planned to create a bank with operations in the Middle East, Africa and Turkey, as well as southern and southeastern Asia. The joint venture plan included EFG Hermes’ main investment banking, asset management and brokerage businesses, and excluded its private equity and Credit Libanais SAL units. More»