Arabian bank falls in London as boss held
SHARES in EFG-Hermes, the London-listed Arab bank, dropped four per cent yesterday after Egyptian authorities banned its co-chief executive from leaving the country.
Yasser el-Mallawany (pictured) was prevented from catching a flight to the United Arab Emirates on Sunday night amid allegations of links to last week’s football riot in which 74 people were killed. EFG-Hermes strongly denies any link to the Port Said tragedy.
The firm’s stock fell 4.51 per cent to LE11.01 (Egyptian pounds) on the Egyptian Exchange yesterday and its Global Depository Receipt listing was down 4.24 per cent to 3.73p in London.
El-Mallawany, one of two EFG chief executives, is one of several business leaders who have been banned from foreign travel by the public prosecutor in the period since the overthrow of president Hosni Mubarak last year.
EFG has come under the spotlight for its association with Mubarak’s younger son Gamal, who owns 18 per cent of the investment bank’s subsidiary EFG-Hermes Private Equity. Last night EFG said neither the bank nor el-Mallawany have been charged, adding: “The firm has been informed that the ban was issued as a precautionary measure.”
EFG-Hermes Private Equity generates no more than seven per cent of EFG Hermes Holding’s total revenue. EFG has said it does not manage any funds or portfolios for Mubarak or his family and did not receive any special privileges from the government.
Mubarak, his two sons and some former officials and ministers are on trial for corruption.