Egypt - Chimera Investments acquired a 2.62% stake in EFG Hermes Holding. Is the company preparing to submit a purchase offer to the largest entity for financial activities in Egypt?

Sources revealed to Daily News Egypt that Chimera aims to expand in the field of non-banking financial activities in Egypt, given the attractiveness of the sector. The sources explained that it aims to increase its stake in Hermes through open market operations.

The sources added that they are studying more than one investment opportunity in this sector. Beltone Investment Bank is studying those opportunities before submitting purchase offers, referring to one of those opportunities as a state-owned enterprise.

Yesterday, EFG-Hermes said that Chimera Investments had bought 30.571 million shares of Hermes, at a value of EGP 590.63m, with an average purchase price of EGP 19.32 per share. Beltone Securities Brokerage Company acted as the broker executing the deal.

The percentage of the shares of groups related to the shareholder reached 3.825%, distributed among RA MENA holdings by 3.18% and RA holdings by 0.645%.

The financial group’s stock closed higher at the end of Tuesday’s trading, reaching EGP 20.02 per share.

Hermes Holding achieved a consolidated net profit of EGP 1.31bn during the first nine months of last year, compared to EGP 1.12bn in the corresponding period last year, an increase of 17.2%.

Total revenues jumped to EGP 6.31bn in January-September 2022, compared to EGP 4bn in the same period of last year.

In August of last year, the Egyptian Stock Exchange management announced the implementation of the compulsory purchase offer submitted by Chimpi 1 Investment BV Restructured, a subsidiary of Emirati Chimera Investments, on Beltone Financial Holding shares, for 259.121 million shares, with a total value of EGP 384.795m.

The number of shares responding to Chimera’s offer to acquire Beltone amounted to 259.121 million, accounting for 56% of Beltone shares.

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