EFG Hermes announces Goldman Sachs as adviser of FAB’s likely offer

Doaa A.Moneim , Monday 21 Feb 2022

Egypt-based investment and financial holding company EFG Hermes has appointed Goldman Sachs as an adviser for the likely acquisition deal offered by the UAE’s First Abu Dhabi Bank (FAB), the company announced on Monday in a filing sent to the Egyptian Exchange (EGX).

EFG

The company also said that its board agreed to allow FAB to conduct its due diligence for the potential deal.

Furthermore, the company assigned a team of financial and legal advisers for the deal.

On 9 February, Egypt’s Financial Regulatory Authority (FRA) said that it had received an offer for a compulsory purchase of EFG Hermes from FAB.

According to this offer, FAB requested acquiring 51 percent of EFG Hermes’ shares in accordance with Law No. 95 of 1992 with an estimated value of EGP 18.5 billion ($1.2 billion), which represents a 21 percent premium to EFG Hermes’ closing price of EGP 15.74 per share on the EGX on 8 February.

The offer price also represents a premium of 32 percent, 40 percent, and 48 percent over the three-month, six-month, and twelve-month volume-weighted average price, respectively, according to the FAB.

It is worth noting that the final share price will be set in light of the results of the due diligence.

The FRA also set the in-principal price of EFG Hermes’ purchase offer at EGP 19 per share until what is due is given.

As of 30 September 2021, EFG Hermes’ total assets were valued at EGP 49.6 billion ($3.2 billion) with a net profit exceeding EGP 1 billion (around $67 million) for the first nine months of 2021.

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