The shares of the Egyptian Financial Group Hermes opened with losses of regarding 15% following canceling the deal of Abu Dhabi’s first acquisition of a stake in the group.
This morning, Thursday morning, First Abu Dhabi Bank announced the withdrawal of the non-binding offer submitted on the ninth of February 2022 regarding the possible acquisition for cash of a majority stake in EFG Hermes Holding, one of the financial services institutions listed on the Egyptian Stock Exchange.
The bank said in a statement that its decision came following a careful study of the ongoing instability in global markets and economies.
The bank stressed that the Egyptian market will remain strategically important for First Abu Dhabi.
The bank also confirmed that it will continue to support its customers and employees, and its investments in developing its well-established partnerships and operations in the Arab Republic of Egypt.
Last February, the Egyptian Financial Supervisory Authority announced The desire of “First Abu Dhabi” to submit a compulsory purchase offer for the possible acquisition of a majority of no less than 51% of the shares of EFG Hermes exporting holdings.
The Authority stated in a statement, at the time, that it had received a letter from the First Abu Dhabi Bank regarding the disclosure of its intention to submit a compulsory purchase offer for a possible acquisition of a majority percentage of the shares of “Hermes” Holding in accordance with the provisions of Section 12 of the Executive Regulations of the Capital Market Law 95 of 1992.
The value of the deal is close to $1.2 billion, as the offered price includes a 21% price premium, compared to yesterday’s closing at 15.85 pounds.
