Shuaa eyes brokerage buy in Egypt - sources

Shuaa Capital has looked at at least two brokerage companies in Egypt as potential acquisition candidates as the investment bank seeks to boost revenues amid a slump in its local UAE market, three sources said on Wednesday.

Shuaa, which took companies like port operator DP World to the market, has looked at HC Securities and Beltone Financial as potential targets, said two of the sources, speaking on condition of anonymity.

"They (Shuaa) do have some cash on their balance sheet from previous asset disposals and revenue generating capabilities in the UAE are limited," said one of the sources. "Not that they are great in Egypt now, but if they can get a deal done at a low price, it could be beneficial in the long-term.

"You would expect some sort of stability to return in Egypt. The question is if it is this year or next or after."

Shuaa, which has said it was looking for strategic assets, has been relying on its own investment banking team and has not hired external banks for the process, one of the sources said. Talks are at initial stages, one source familiar with the matter said.