First Abu Dhabi Bank (FAB) today announces that it has submitted a non-binding offer for a potential cash acquisition of a majority stake in Egyptian financial services institution EFG Hermes Holding S.A.E. (EFG Hermes).

The non-binding offer for a minimum of 51% of the outstanding share capital of EFG Hermes, is subject to due diligence and regulatory approvals from the relevant authorities in Egypt and the UAE. Following the satisfactory outcome of the due diligence process, FAB intends to make a mandatory tender offer in accordance with applicable laws and regulations.

In its non-binding offer to the Board of Directors of EFG Hermes, FAB has indicated an all-cash offer price of EGP 19.00 per share. The offer values EFG Hermes at EGP 18.5 billion and represents a 21% premium to EFG Hermes’ closing price of EGP 15.74 on 08 February 2022. The offer price also represents a premium of 32%, 40% and 48% respectively over the three-month, six-month and twelve-month volume-weighted average price.

Headquartered in Cairo and listed on the Egyptian Exchange (EGX), EFG Hermes is a diversified financial services institution serving frontier emerging markets, with a strong track record of over 35 years and an outstanding reputation across regional and international markets. In September 2021, EFG Hermes’ total assets were EGP 49.6 billion (USD 3.2 billion), with a net profit of EGP 1,054 million (USD 67 million) for the first nine months of 2021.

FAB believes that the non-binding offer represents an attractive liquidity event and a compelling value proposition for EFG Hermes’ shareholders, reflecting the company’s robust fundamentals, and strong future growth prospects.

Additional details with regards to the due diligence process or the potential transaction would be provided to the market in due course.