Cairo – Mubasher: EFG-Hermes Holding logged EGP63.66 million ($7.2 million) consolidated losses in the first quarter of 2016, against a net profit of EGP181.55 million ($20.4 million) for the year-ago quarter, according to a bourse filing.
Q1-16 losses are driven by the board’s go-ahead for selling its 63.7% stake owned in Credit Libanais Bank, the company said,
EFG Hermes is currently working on securing the approvals of the Lebanese central bank to proceed with selling a 40% stake, or 9.408 million shares in the bank at $33 each. Meanwhile, EFG Hermes entered into an irrevocable underwriting agreement to sell its remaining, indirectly-owned 23.7% stake, or 5.506 million shares in Credit Libanais Bank at $181.7 million. The deal is expected to be finalised by the end of May, 2017.
Credit Libanais Bank’s profits after tax grew 2% year-over-year to $17.4 million in the first quarter of 2016.
On the other hand, Hermes’ standalone results indicated that company earned EGP72.05 million in FY16 first quarter against a net loss of EGP40.37 million for the first quarter of 2015.
In 2015, the company registered EGP648.92 million consolidated profits , 8% down from EGP706.98 million reported a year earlier.
