Africa, Business, invesment, Invesments, news, Uncategorized, World Bank, World Bank Group

Africa News January 10, 2014 at 09:04AM

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VENTURES AFRICA – EFG Hermes Holding, Egypt’s largest investment bank, has approved a plan for a massive buyback program that will return EGP1 billion ($143.8 million) to the company’s shareholders during the first nine months of 2014.

The first phase of this program will take place immediately and is aimed at returning EGP425 million ($61.1 million) through a buy-back of 36,956,522 shares representing approximately 6.44 percent of the company’s current outstanding shares at a price of EGP11.5 ($1.65) per share.

The offer will be fully funded by the company.

The second phase of the buyback program worth EGP575 million ($8.27 million) is expected to take place during late second to third quarter 2014.

The decision to launch this program is a result of “the management’s strong confidence in the long-term prospects of the Company and its belief that the price at which the stock is currently trading at doesn’t reflect the long-term potential or the tangible book value of the Company,” an official statement read.

The bank’s management believes the program will spur it towards enhancing shareholders’ value on the medium and long-term while offering and improving the company profits.

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