07 June 2016
BEIRUT: Credit Libanais confirmed Monday the Central Bank approved the sale of 40 percent of EFG Hermes shares to a group of Lebanese, Arab and international investors for over $310 million. Credit Libanais is pleased to announce that the Lebanese Central Bank has approved the sale of a 40-percent stake in Credit Libanais previously held by EFG Hermes to a number of International, Arab and local investors comprising sophisticated funds, institutional and individual investors, the bank said in a statement.
The chairman of Credit Libanais Joseph Torbey has managed to raise this money after securing new shareholders. Some of the current shareholders have also raised their stakes in the bank.
The stake was sold for a total consideration of $310,488,000 (three hundred and ten million four hundred and eighty eight thousand U.S. Dollars) distributed over 9,408,749 shares at a price of USD 33 (thirty-three U.S. Dollar) per share, the statement added.
The bank said that the deal is considered a strategic achievement for the Lebanese banking sector amid the difficult regional and national conditions, reiterating investors confidence in the sector on the one hand and in the policies of the Lebanese Central Bank on the other.
The transaction also highlights the robust financial standing of Credit Libanais as well as the professionalism of its management team who was able to successfully market the deal in such a critical timing, the statement said.
Torbey told The Daily Star on March 2016 that a group of Lebanese and Arab investors have secured $332 million to buy nearly two-thirds of Cairo-based EFG Hermes 63.74 percent stake in the bank.
We have managed to bring prominent investors from Lebanon, Gulf and Arab states to buy [40 percent of Credit Lebanais out of] the the stake of EFG Hermes. This is considered a big achievement given the delicate situation in Lebanon, Torbey added at that time.
The remaining 5,506,134 shares indirectly owned by EFG Hermes in Credit Libanais will be sold to new investors before May 31, 2017, according to the agreement between both parties.
Bloomberg News said EFG Hermes were keen to sell its stake in Credit Libanais as it faces growing competition at home.
Billionaire Naguib Sawiris is combining two investment banks to challenge the Cairo-based lenders market dominance. Over the past year, EFG-Hermes has started a leasing business and acquired a micro-financing company, the agency said.
Credit Libanais is one of the 14 leading Lebanese banks in terms of assets, deposits and profits.
Copyright The Daily Star 2016.
