Hermes gives FAB green light to start due diligence

Fatma Salah
2 Min Read
EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), revenues grew by 20% year-over-year (Y-o-Y) to EGP 1.6bn in the second quarter of 2021 (2Q21).

The Board of Directors of EFG Hermes Holding held a meeting to consider the non-binding initial purchase offer submitted by the First Abu Dhabi Bank (FAB) to acquire a majority share of no less than 51% of the company’s capital shares through a compulsory purchase offer in accordance with Law No. 95 of 1992 and its executive regulations.

The company’s board of directors agreed to allow the FAB to conduct its due diligence within the scope the two parties agreed on. All necessary approvals were obtained from the relevant regulatory authorities.

Hermes also appointed an independent financial adviser to prepare a study of the fair value of its shares with the aim of explaining this value to shareholders and protecting their interests.

The company stressed that the purchase offer submitted by the FAB — which is one of the largest and most successful financial institutions in the Middle East and North Africa — is a testament to the strength and success of the business model that EFG Hermes built and developed over many years.

The decisions the Board of Directors made can be summarised in appointing Goldman Sachs and White & Case as the company’s financial and legal advisers, respectively.

Sources told Daily News Egypt that the due diligence examination will take about 60 days and may be extended to an additional 60 days.

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