Hermes trading resumes after statement on CEO
Cairo, February 14, 2012
Egypt's stock exchange briefly suspended trade in EFG-Hermes shares on Tuesday but resumed dealing after the investment bank issued details about its chief executive Yasser El Mallawany, who faces a travel ban.
The shares were trading down 1.6 per cent, compared to a 1 per cent drop in benchmark index.
Airport authorities prevented Mallawany from travelling to the UAE last week when officials found his name on a list of people banned from leaving.
The company had last week said Mallawany was carrying out his duties and that no charges of any form had been levelled against him. It issued a fresh statement on Tuesday.
"EFG Hermes Holding confirms that the company is not under any kind of investigation and is carrying out its business as usual in Egypt and the region," it said, adding Mallawany was performing his duties and no charges had been levelled.
Following the fall from power of President Hosni Mubarak last year the public prosecutor banned some officials and businessmen from travelling, pending investigations into corruption allegations.
Mubarak, his two sons and some former officials and ministers are currently on trial on corruption and other charges.
EFG-Hermes has come under the spotlight since last year for its association with Mubarak's younger son Gamal, who owns 18 percent of the investment bank's subsidiary EFG-Hermes Private Equity.
EFG-Hermes has said the subsidiary generates no more than 7 per cent of EFG Hermes Holding's total revenue and that it does not manage any funds or portfolios for Mubarak or his family and did not receive any special privileges from his government. – Reuters