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Tuesday, 22 February 2022

Goldman Sachs to advise EFG on bid by FAB, board okays start of due diligence

Goldman Sachs and law firm White & Case will advise EFG Hermes’ board of directors on a takeover bid by First Bank of Abu Dhabi (FAB), EFG said in a regulatory filing (pdf) that confirmed reports earlier this week that it was planning to tap the international investment bank.

The board also gave the go ahead for FAB to conduct due diligence on EFG, pending approval from regulatory bodies, the disclosure said.

EFG will also hire an independent financial advisor will be hired to prepare a fair value study if the UAE lender decides to submit a mandatory offer, EFG’s board agreed.

FAB’s advisors: Rothschild & Co is providing financial advice to FAB, while Matouk Bassiouny & Hennawy are its local counsel.

A recap of the offer: The Emirati lender announced in February its offer to buy at least 51% of EFG in a transaction valued approximately at EGP 18.5 bn, which would make it one of Egypt’s biggest acquisitions in recent years. FAB is reportedly considering raising its offer depending on the results of the due diligence process. The bid for EFG draws a clear line under the attractive fundamentals not just of the country’s leading financial services corporation, but of Egypt as a destination for foreign direct investment.

ALSO FROM EFG-

Transmar signs USD 25 mn financing agreement with EFG Hermes for new vessel: Transmar, an IACC subsidiary and Egypt’s home-grown container shipping line, has signed a USD 25 mn agreement with EFG Hermes Corp-Solutions to finance the purchase of a new cargo vessel, EFG said yesterday in a statement (pdf). Dubbed the Transmar Legacy, the new vessel will cost USD 33 mn, and it is set to operate primarily between Egypt and Saudi Arabia, according to the statement.

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