CAIRO, March 26 Shareholders and investment
funds that make capital gains from Qatar National Bank's (QNB)
bid for Cairo-based National Societe Generale Bank
(NSGB) will face a 10 percent tax, Egypt's tax
authority said on Tuesday.
Egypt's regulator approved the QNB offer in February after
insisting that the Qatari lender buy 100 percent of Egypt's
second-largest private sector bank by market value rather than
the originally planned 77 percent stake.
QNB had said in December it planned to buy the 77 percent of
NSGB held by its French parent Societe Generale.
The Egyptian tax authority said Societe Generale would be
exempted from taxes for the transaction under an agreement to
avoid double taxation between Egypt and France.
But individual shareholders and investment funds holding
minority stakes in NSGB will have to pay a 10 percent tax on
their gains, the tax authority wrote in a letter to the stock
exchange, which was published on Tuesday.
QNB has offered 38.65 Egyptian pounds ($5.68) per NSGB
share, compared with Monday's close of 38.49 pounds.
QNB is 50 percent owned by the Qatar Investment Authority, a
sovereign wealth fund that has led the bulk of the gas-rich Gulf
state's international acquisitions in recent years, including
stakes in Barclays, carmaker Volkswagen and
luxury store Harrods.
($1 = 6.7989 Egyptian pounds)
(Reporting by Ulf Laessing, Nadia el-Gowely and Ehab Farouk;
Editing by Tom Pfeiffer)