The Arab Banking Corporation (ABC) has submitted an offer to buy up to 300 million shares representing 100% of the issued capital of BLOM Bank – Egypt at EGP 22.33 per share.
In a statement on Monday, the Egyptian Exchange (EGX) said that the execution and settlement currency is equivalent to $1.42 per share.
The EGX also said that the validity period of the offer is 10 working days, starting from the day following the date of the purchase offer’s publication, and will run until the end of trading on 5 August. Implementation will be carried out on the EGX within five working from the end of the offer period.
It stressed that all brokerage firms must register the buy and sell orders for this offer (OPR) in its system during that mentioned period, provided that all orders are open for a period (OPEN), as well as for orders to reserve the registered quantities.
No amendments to the codes of the selling clients that could lead to suspension are allowed, until the completion of the transaction.
Moreover, all brokerage firms should review their orders through the system’s follow-up screens before the end of the 5 August trading session.
This is provided these companies make any amendments to their orders before the end of this date, with no amendments to the order data allowed after.
The EGX stressed that all brokerage firms and dealers must abide by all the trading rules in force. They should also take into account the rules of the clearing and settlement process, as well as the rules of work of the Settlement Guarantee Fund.
The ABC said, in a statement sent to the Bahrain Stock Exchange on Sunday, that it had obtained approval from Egypt’s Financial Regulatory Authority (FRA) on the compulsory purchase offer it submitted to acquire all BLOM Bank Egypt shares.
The corporation will buy up to 300 million shares in a deal valued at $427m, equivalent to EGP 6.7bn.
HSBC Bank Middle East will act as the financial advisor to the ABC, while Freshfields Bruckhaus Deringer and Zulfikar & Associates will act as legal advisors. CI Capital will act as financial advisor to BLOM Bank, whilst Baker & McKenzie will act as legal advisor.