BROKERAGE WATCH- EFG Hermes is looking to expand into Nigeria through an acquisition, Ali Khalpey, CEO of EFG Hermes’ Frontier market unit, told Reuters. Khalpey added that EFG Hermes also expects to get regulatory approval to start a brokerage business in Kenya this year as part of a big push into frontier markets. The investment bank is also boosting its frontier research team to between 12 and 15 over the next year from eight currently, Khalpey added. The firm has already entered Pakistan, and next on the expansion list could be Bangladesh and Vietnam. “We like to look at illiquid, non-transparent markets where being on the ground gives incredible competitive advantage over everybody else,” he said. Khalpey added that he is excited about the long-term prospects in Pakistan and noted that EFG is planning to have an office with 10 to 15 people in Kenya to serve as a base for Tanzania, Rwanda and Uganda, once regulatory approvals are obtained.

ADI, Sigma to merge? Meanwhile, in what we hope is a harbinger of consolidation in a very fragmented industry, Al Ahly for Development and Investment (ADI)’s board of directors approved opening talks to merge with top-five brokerage Sigma Capital Holding through a share swap, according to a bourse disclosure. ADI set a deadline of 30 September for submitting a fair value assessment, conducting due diligence, and negotiating the transaction.