Mona Zulficar, EFG-Hermes Board of Directors chairperson, said Hermes BOD has not discussed dividend distribution yet as such a matter shall be determined after its business lines; securities brokerage, asset management, investment banking, private equity and research announce their business results.
Zulficar mentioned that the additional disclosures required by the Egyptian Financial Supervisoy Authority (EFSA) would not affect EFG-Hermes’ joint venture deal with QInvest.
“Hermes’ ESM had approved by majority to go through its deal with QInvest. ” Zulficar added
She noted that EFSA has the right to require some additional disclosures on the shareholders and the fate of the minority’s rights.
Referring to an alternative offer made by Planet IB, a consortium of investors, Zulficar said: “Planet IB file has, to our knowledge, been closed as they did not file any tender offer applications with EFSA.”
Commenting on the complete mystery which surrounds QInvest deal, Zulficar noted: “We don’t have something to hide behind the scenes; EFSA can require any further disclosure on our deal with QInvest.”
Zulficar mentioned that after receiving EFSA’s approvals beside of other regulators in Arab countries where Hermes has activities, it is expected that QInvest deal will be concluded by the end of the third quarter of 2012.
EFSA announced July 25th that it approved the Hermes shareholders assembly in form but refused it in terms of content, procedures and decisions.
Dr. Ashraf Al-Sharkawy, EFSA chairman, mentioned that EFSA rejected decisions made at EFG-Hermes’ annual meeting last month because the firm did not clarify various points regarding the deal including the fate of minority rights, dividends distribution after it is completed.
Al-Sharkawy was quoted as saying that EFG-Hermes must provide the required information and reconvene shareholders meeting for the deal to be completed.
EFG-Hermes and QInvest sealed the agreement in May to hive off EFG’s investment banking business in a joint-venture in which state-backed QInvest would hold a 60 percent stake.
