CAIRO: Egyptian investment bank Naeem Holding said on Tuesday its board approved a plan to buy back up to 4.9 percent of the firm s shares from the open market.
We see it as an investment opportunity as the fair value of the stock is much more than the current market price, Tarek Gadallah, Naeem Holding s investors relations director, said.
We are sending a message that we believe in the stock.
Shares in Naeem jumped 4.71 percent to $0.89 by 0946 GMT putting the total value of the 4.9 percent stake at about $14 million. The total number of listed shares in the bank is 320 million shares.
A bank statement said the board also agreed to sell Naeem Financial Investment, which is a subsidiary of Naeem Holding, to a sister company.
Gadallah declined to disclose the value of the deal or the name of the buyer but said the sale was part of a restructuring plan aimed at centralizing its activities.
Naeem Holding posted a 25 percent fall in its first-half profits to $16.5 million.