Egypt’s regulator has no objections to EFG Hermes’ plan to create a jointly owned investment bank with QInvest of Qatar, the bank said Monday.
EFG Hermes and QInvest agreed in May to hive off EFG Hermes’ investment banking business into a joint venture in which state-backed QInvest would hold a 60 percent stake.
EFG Hermes shareholders in September reaffirmed their approval of the tie-up after demands by the regulator for more details were met. The Egyptian Financial Supervisory Authority had rejected decisions approved by shareholders in June because the firm had not clarified points including minority rights.
The firm said in a statement that the authority certified, “with no reservations,” EFG Hermes’ minutes from the general meeting held 16 September to approve the company’s strategic alliance with QInvest.
The statement was sent to the Egyptian and London stock exchanges.
A spokesperson for the Egyptian bank said no further approvals were needed from Egyptian authorities.