Egypt's EFG Hermes Receives Non-Binding Offer For Acquisition Of A Majority Stake From First Abu Dhabi Bank

EFG Hermes Holding has announced that it has received a non-binding offer from First Abu Dhabi Bank for a potential cash acquisition of a majority stake.

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EFG Hermes Holding, the leading financial services corporation in frontier emerging markets, has announced that it has received a non-binding offer from First Abu Dhabi Bank (FAB), one of UAE's leading banks, for a potential cash acquisition of a majority stake, of not less than 51% of the issued shares of the company at an indicative purchase price of EGP19 per share.

EFG Hermes

According to the release, the transaction's completion and final purchase price are conditional following the completion of a satisfactory comprehensive due diligence on the company, as well as the receipt of the required regulatory approvals. After which, a mandatory tender offer will be made to all shareholders of the company, in accordance with market rules.

Related: Follow The Leader: Karim Awad, Group CEO, EFG Hermes

With EFG Hermes' market value of over US$970 million, the offer is an indication on EFG Hermes' expertise in regional and international markets, as well as strong management team, corporate governance, and brand equity.

Rothschild is said to be advising on the deal, according to Reuters, making it its second major transaction in Egypt after it acquired the Egyptian business of Lebanon's Bank Audi in 2021.

Related: EFG Hermes Completes Successful Advisory Of ACWA Power's US$1.2 Billion Listing On Saudi Stock Exchange, Tadawul