The Financial Regulatory Authority (FRA) revealed that it had received a letter from the First Abu Dhabi Bank (FAB) regarding the disclosure of its intent to submit a compulsory purchase offer to acquire a majority percentage of no less than 51% of the capital of EFG Hermes Holding in accordance with the provisions of Chapter 12 of the Executive Regulations of the Capital Market Law No. 95 for the year 1992.
The authority indicated, in a statement issued on Wednesday, that the company will start the due diligence procedures as soon as possible, knowing that the initial price is EGP 19 per share until the due diligence procedures are finished.
Sources close to the deal revealed that the FAB chose UBS AG as a financial adviser in the acquisition offer of EFG Hermes, while Matouk Bassiouny and Hennawy will act as the legal advisers for the bank. Zulficar and Partners’ office will act as the legal adviser for EFG Hermes’ side.
Sources say that the due diligence process will take about 60 days and may extend for an additional 60 days, pointing out that EFG Hermes is preparing to choose an independent financial adviser to determine the fair value.
Based on the due diligence, it will be decided whether to submit the purchase offer in light of the results of the procedure, as well as obtaining relevant internal and administrative approvals from the concerned authorities inside Egypt and the UAE.
On its part, EFG Hermes Holding confirmed in a statement to the Egyptian Exchange (EGX) that it had already received an offer from the FAB to acquire no less than 51% of their shares on the EGX.
The company also said that the offer proves the good reputation it enjoys in the regional and global markets. This also highlights the strength of the management team and the high level of governance. Additionally, the company’s employees are a vital element in its ability to grow and compete.
Furthermore, EFG Hermes confirmed that the company’s board of directors is currently studying the offer and that it will disclose any developments as soon as they occur, advising small investors to be careful with their dealings.