EFG Hermes Approved Today its Stake Sale at Credit Libanais
EFG Hermes, the largest publicly traded investment bank in the Arab world approved today the sale of a 40 percent stake (equal to 9.41M shares) in Credit Libanais to Arab and Lebanese investors at $33 per share before taxes and charges, thus amounting to a total of $310.44M. The Egyptian firm also announced that it will sell the remainder of its holding (5.5 million shares) in Credit Libanais at the same price by May 2017 through an underwriting agreement with Credit Libanais Investment Bank. The whole stake sale will account for $492M approximately, noting that the Egyptian firm received $41.5M in dividends during the investment period. It is worth mentioning that this stake sale is still subject to approval from the Lebanese Central Bank (BDL).
EFG Hermes had initially bought 63.7% of the Lebanese bank in 2010 for $542M, as it was willing to expand its business in the Levant region, however, the worsening war in Syria and its spillovers on the Lebanese economy in general and on the banking sector in particular pushed the Egyptian firm to withdraw from the Lebanese market.
Credit Libanais financial details
| 2011 | 2012 | 2013 | 2014 | |
| Profits (LL) | 97.79B | 92.07B | 103.22B | 96.83B |
| Dividends/share(LL) | 700 | 1,500 | 2,000 | N/A |
| Deposits (LL) | 9,786.20B | 10,493.39B | 10,790.96B | 11,665.85B |
Source: Egyptian Bourse, Bilanbanques
