Abraaj sells Egyptian bank stake for double purchase price

Dubai Financial Group has bought rival Middle Eastern firm Abraaj Capital’s minority stake in Egyptian bank EFG-Hermes for $1.1 billion.

Middle Eastern private equity firm Abraaj Capital has sold its 24.62 percent stake in Egyptian bank EFG-Hermes after a year to local rival Dubai Financial Group for around $1.1 billion (€743 million).

The deal makes Dubai Financial the largest shareholder in the bank, which is also listed in London and Cairo.

Abraaj bought its stake for $505 million last year. The bank diversified into retail products, while focusing on consistent expansion across the GCC, including Saudi Arabia.

Abraaj carried out the largest ever private equity deal in northern Africa earlier this year through the buyout of the Egyptian Fertilizers Group for $1.41 billion.

Earlier this month Dubai Financial bought a stake in Marfin Popular Bank and the Greek bank’s investment arm Marfin Investment Group. Dubai Financial also has stakes in Taib Bank, BankMuscat, Global Investment House and Dubai Bank.

Dubai Financial’s parent company Dubai Holding is wholly owned by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. Dubai Holding contrasts its status with the Istithmar investment company, which is funded by the Dubai government.