The action comes in line with the company’s consideration of the likely deal, with the two advisors assessing the deal legally and financially.

EFG Hermes said that it will disclose any further details in due time.

On Wednesday, Egypt’s Financial Regulatory (FRA) said that it had received a request from the UAE’s FAB for a compulsory purchase of EFG Hermes.

FAB requested to purchase 51 percent of EFG Hermes’ shares in accordance with Law 95/1992, noting that it will conduct its due diligence soon and acquire the required approvals from the concerned bodies in Egypt and the UAE.

FAB estimated the deal value at EGP 18.5 billion ($1.2 billion) and represents a 21 percent premium to EFG Hermes’ closing price of EGP 15.74 on the EGX on 8 February.

It 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.

As of 30 September 2021, EFG Hermes’ total assets valued at EGP 49.6 billion ($3.2 billion), with a net profit exceeding EGP 1.04 billion (around $67 million) for the first nine months of 2021. 

In May 2021, the Cabinet approved acquisition deal of the state-owned Arab Investment Bank (AIB) by EFG Hermes (with 51 percent stake acquired) and the Sovereign Fund of Egypt (with 25 percent stake acquired.)