The Dubai Group has sold its 11.8 per cent stake in Egyptian investment bank EFG-Hermes to European bank Natixis as part of debt restructuring, the group said.
“The sale of our stake in EFG-Hermes is consistent with the business plan for Dubai Group, which was agreed with its lenders as part of the restructuring agreement,” said Fadel Al Ali, the chairman of Dubai Group.
The Dubai Group did not disclose the value of its stake in the Cairo-listed bank. EFG-Hermes has a market capitalisation of about 8 billion Egyptian pounds (Dh3.3bn).
The group sold its 48.3 per cent stake in Dubai investment bank Shuaa Capital in June to investment company Abu Dhabi Financial Group. Dubai Group was formerly the biggest shareholder in Shuaa before the assets sale.
The group, which is part of conglomerate Dubai Holding, had been under pressure to sell its stakes as part of a debt restructuring plan agreed with creditors in 2014.
EFG-Hermes swung to a 70 million pound loss in the second quarter because of tax charges associated with its sale of a 44.3 per cent stake in Lebanese lender Credit Libanais to Arab and Lebanese investors.
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