EFG-Hermes plays down stake in its subsidiary held by Gamal Mubarak

EGYPTIAN investment bank EFG-Hermes has said that Gamal Mubarak’s stake in the bank was limited to an 18 per cent holding in a subsidiary, EFG Private Equity.

Last week opposition Wafd newspaper said Gamal, son of ousted President Hosni Mubarak, had extensive holdings in the investment bank through foreign investment funds.

“EFG-Hermes Financial Group Holding stresses that its relationship with Mr Gamal Mubarak is limited only to ownership of around 18 per cent (which is the announced matter) in one of its subsidiary companies, EFG Private Equity,” the bank said in a statement released by the stock exchange.

EFG-Hermes Private Equity contributes no more than seven per cent to the group’s total revenue, the statement said, adding that the bank’s relationship with Gamal dated to 1997, before he became involved in politics.

EFG-Hermes revenue in 2009 totalled 1bn Egyptian pounds (£106.3m).

Gamal Mubarak quit his position as head of the policy secretariat of Egypt’s ruling National Democratic Party on 5 February.

He previously worked as an investment banker for Bank of America in Cairo and London.