CAIRO – EFG Hermes UAE Limited, owned by Egyptian investment bank EFG Hermes, is to invest $21.5 million in Frontier Investment Management Partners LTD (FIM) as part of plans to expand its asset management business, the bank said on Tuesday.
FIM is one of the region’s leading asset managers with $1.6 billion of assets under management. Once the deal is completed EFG Hermes will have $4.5 billion of assets under management, the bank said.
EFG Hermes, which has a presence in the United Arab Emirates, Saudi Arabia, Kuwait, Jordan and Oman, is one of the largest investment banks in the Middle East.
Karim Moussa, head of asset management and private equity at EFG Hermes, said EFG Hermes had found a strong partner in FIM’s founder and CEO Hedi Ben Mlouka and his team.
“I look forward to working with them on developing further their edge while offering the FIM current product portfolio through our growing network of regional and international institutional clients,” Moussa said in a statement.
Hermes said it would own a 50 percent stake in FIM through the agreement while the remaining 50 percent will continue to be held by Ben Mlouka.
By 1030 GMT, EFG Hermes shares were at 23.75 pounds, up 0.71 percent and attracting the biggest volume in the market.
Reporting by Ehab Farouk; writing by Arwa Gaballa. Editing by Jane Merriman