EFG-Hermes Holding SAE (HRHO.CA), Egypt's largest investment bank, said it's been hired by Dubai-based private equity firm Abraaj Group to advise on the sale of its controlling stake in the Spinneys supermarket chain. The bank, based in Cairo, confirmed its appointment in an e-mailed response to questions by Bloomberg News, without giving further details. A spokeswoman for Abraaj, who asked not to be identified because of company policy, declined to comment. Spinneys was founded in Alexandria, Egypt, in 1924 and acquired by Abraaj in 2004. Ahmed Badreldin, a partner at the firm and head of the Middle East and North Africa, said in a May 24 interview that the firm is considering a sale of the Spinneys stake. Abraaj has about $7.5 billion of assets. Majid Al Futtaim Holding LLC, a Dubai-based mall and supermarket operator, is in the “early stages" of looking at the stake in Spinneys after acquiring Carrefour SA (CA)'s 25 percent stake in its Middle East joint venture, Chief Executive Officer Iyad Malas said in an interview on May 25. A deal with Spinneys would be valued at less than $500 million, Malas said. Spinneys has outlets in Egypt, Jordan, Lebanon and Qatar and operates in the United Arab Emirates under franchise.
