The statement added that EFG Hermes’ board has agreed to allow FAB to conduct its due diligence for the potential deal
Egypt-based investment and financial holding company, Egyptian Financial Group Hermes Holding (EFG Hermes), announced it has appointed Goldman Sachs as its adviser for its possible acquisition by the UAE’s First Abu Dhabi Bank (FAB) yesterday.
EFG Hermes’ board appointed the international multinational investment bank as its financial adviser, with White & Case as legal counsel to advise the board on the offer, according to an Egyptian Exchange (EGX) filing.
FAB is looking to acquire a majority stake of 51% in EFG Hermes shares, which has an estimated value of EGP 18.5 billion ($1.2 billion), representing a 21% premium to EFG Hermes’ closing price of EGP 15.74 per share on the EGX on 8 February.
The statement added that EFG Hermes’ board has agreed to allow FAB to conduct its due diligence for the potential deal.
Egypt’s Financial Regulatory Authority (FRA) said that it had received an offer for a compulsory purchase of EFG Hermes from FAB back in February 9.
FAB’s offer price represents a premium of 32%, 40%, and 48% 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.
