Wednesday, 9 February 2022

Top #UAE Lender First #AbuDhabi Bank Offers to Buy EFG Hermes - Bloomberg

Top UAE Lender First Abu Dhabi Bank Offers to Buy EFG Hermes - Bloomberg

First Abu Dhabi Bank PJSC made an offer to buy a majority stake in EFG Hermes, in what’s likely to be the biggest acquisition yet in Egypt by the UAE’s largest lender.

EFG Hermes, Egypt’s biggest investment bank, said it received a non-binding offer from First Abu Dhabi Bank for a stake of no less than 51%, according to a statement, confirming an earlier Bloomberg News report. FAB, as the UAE bank is known, offered 19 Egyptian pounds ($1.21) per share, a premium of about 21% to where EFG was trading before it was suspended on Wednesday.

The deal’s completion and final purchase price are conditional upon due diligence and regulatory approvals, EFG said. Under Egyptian market rules, a tender offer for 100% of shares is mandatory if the prospective buyer is seeking a stake of over one-third of the target company.

EFG’s stock has rebounded almost 40% since last year’s low in August, giving the bank a market value of $924 million, according to data compiled by Bloomberg.

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