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Pharos commented on the news that EFG-Hermes Holding will hold its 2nd extraordinary shareholder meeting (EGM) on Sept. 16th to discuss the terms of the Q-Invest deal and to approve dividend payout at EGP 4 per share.
Hany Genena, CFA, Head of Research, Pharos Securities Brokerage, stated, “We reiterate our negative views on the deal for current shareholders”. Genena stated that the cash dividend is akin to a liquidation dividend and any possible upgrade in the valuation of the cyclical investment banking, asset management and brokerage businesses due to the recent improvement in market conditions has already been capped by the deal terms and the call option held by Q-Invest on the remaining 40.0% stake.
Mubasher
