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Monday, 13 June 2016

EFG Hermes outlines roadmap following Credit Libanais sale

EFG Hermes will distribute c. USD 122 mn in proceeds from its USD 310 mn sale of Credit Libanais to its shareholders in the form of cash and share buybacks. The company outlined its roadmap following the sale in a statement yesterday, which sets out its vision for use of the remaining proceeds as it adds firepower to its existing operations and expands into frontier markets and new product lines. Perhaps most intriguingly, the firm is looking to move to a merchant banking model, writing: “We will start to pursue underwriting activities for both debt and equity as well as selectively taking pre-IPO positions in companies that are in need of capital to finance their final phase of growth before going public.”

EFG Hermes also said it will also “fortify its operating subsidiaries” and enhance the capitalisation of its investment banking platform. A main objective for the company is to grow its assets under management through public and private markets by way of its asset management and private equity teams. EFG Hermes is looking to transform itself into a “frontier house,” with a strong presence in the MENA region as it eyes expansion in Pakistan, Morocco, Vietnam, Bangladesh, Sri Lanka, and Kenya. It is also looking to expand its finance platform, which includes microfinance arm Tanmeyah and its leasing business. Reuters has coverage, or you can read the full statement for yourself here in pdf.

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