Orascom Telecom rights issue almost fully subscribed Orascom Telecom said its rights issue was almost fully subscribed, raising more than $790 million for the mobile operator as it challenges an Algerian tax bill. This was expected because anyone who did not subscribe would have had his shares hugely diluted, said Ahmed Adel, a telecom analyst at Naeem. Orascom Telecom said 99.67 percent of the 4.3 billion new shares were subscribed at LE 1 apiece, leaving 14.5 million shares to be offered from March 7-10. The secondary offering will close on March 8 for holders of the firm s global depositary receipts. The company said the Egyptian regulator approved the second offering for the remaining shares and full detail would be published in Egyptian newspapers on Saturday. The rights issue was launched in part to ensure liquidity while the company fights a $597 million tax bill which Algeria says is owed by its Djezzy mobile subsidiary. Algerian sources told Reuters in February the government wanted Orascom to exit the country. On Tuesday, Algeria s finance minister said the government treated all telecom firms equally and was only acting to ensure tax was paid. -Reuters Declining fees hit EFG-Hermes net profit Egyptian investment bank EFG-Hermes will pay a LE 3 ($0.55) per share dividend despite 2009 net profit dipping 40.9 percent as fee and commission income declined, the firm said on Thursday. The bank reported net profit for the year of LE 551.8 million ($100.7 million), compared to LE 933.5 million in 2008. The firm said its consolidated net revenue was LE 1.43 billion, down 33.8 percent from LE 2.16 billion a year earlier. Income from fees and commissions fell 52.3 percent to LE 772 million due to challenging market conditions over the year, including the decline in volumes traded across the region by an average of 40 percent, the bank said. The capital markets totally shutting down but slowly recovering over the last few months of the year and the near absence of incentive fees, have been reflected in the decline of fee and commission revenue, it added. Total assets under management rose to $5.3 billion at the end of the fourth quarter of 2009, compared to $4.3 billion at the end of the third quarter of 2009. The firm said it would distribute a dividend of LE 3 per share, including a LE 2 special dividend from the sale of its stake in Lebanon s Bank Audi. -Reuters HSBC names Mideast retail bank head, based Cairo HSBC has picked Halla Sakr, based in Cairo, as regional retail banking and personal financial services head, highlighting the growing importance of the bank s Egypt business, HSBC said on Wednesday. Sakr, an Egyptian, had been deputy managing director of HSBC Egypt. This move shows the growing importance of Egypt to our Middle East business, said HSBC spokesman Tim Harrison. Egyptian-based banks have been expanding their retail business in the country of 78 million people, where analysts say only about 10 percent of the population have a bank account. Egypt also sidestepped the worst of the world financial crisis, maintaining growth near 5 percent, in part because its conservative banks were flush with cash, analysts say. Sakr is replacing Abdulfattah Sharaf, from the United Arab Emirates who is now CEO of the HSBC s UAE operations. The move to appoint Sakr does not involve any other staff relocations. HSBC has 80 retail branches and a large regional service centre in Egypt. -Reuters HDB to raise capital Housing and Development Bank (HDB) has obtained the necessary legal approvals to raise its paid-in capital from the current LE 670 million to LE 1,150 million through the offering of 48 million shares on 2 tranches, Beltone Financial reported. The first tranche comprises of 45 million shares offered to the bank s existing and new shareholders at LE 20.25. The bank s existing shareholders will have the right to maintain their ownership share in the bank s capital. Some existing shareholders have waived their right in the subscription in the current capital increase, and their share is equivalent to 27.4 million shares of the 45 million offered shares, the bank said. The second tranche comprises of 3 million shares offered to the bank s employees at LE 10.25. The ex-right date is March 21. Subscription for both existing and new shareholders starts on March 23 and ends on April 22 for existing shareholders and on May 6 for new shareholders.
