UK bank gets Egyptian investment

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Panmure Gordon, the British stockbroker and investment bank, has announced a large Egyptian bank will buy a share in its business for £3.2m.

EFG-Hermes, Egypt's largest investment bank by market value, has agreed to acquire 9.97% of Panmure.

EFG-Hermes will pay £3.2m cash for some 6.7 million new shares at 47p each.

Panmure chairman Tony Caplin said the move was a good opportunity for each company to access the other's customer base and create new business streams.

"The markets we operate in are becoming more international and the opportunities available through a business relationship with EFG-Hermes are compelling," added Mr Caplin.

EFG-Hermes' chairman, Hassan Heikel, said the purchase would strengthen its strategy to service its Middle Eastern client base.

Panmure Gordon has been in operation as a corporate and institutional stockbroker and investment bank for 130 years.

It has a US subsidiary, ThinkPanmure, and about 280 employees in eight cities in the UK and the US.

EFG-Hermes' clients include governments, corporations and individual investors. In June 2008, it had a market capitalisation of more than $3.5bn (£1.9bn).

It employs 700 people and services clients from 13 offices in the Middle East and North Africa.