News Column

EFG Hermes Board release statement on voluntary tender offer

June 10, 2014



The Board of Directors of EFG Hermes Holding S.A.E convened to discuss the voluntary tender offer that has been submitted to EFSA for approval by a consortium led by Egyptian businessman Naguib Sawiris offering to buy up to 20 per cent of the shares of the Company.

"Although the Board considers this action as a potential change in the Company's shareholder structure and not an acquisition, it still felt that it would be in the best interest of all shareholders to appoint an Independent Financial Advisor (IFA) to opine on the fair value of the stock and the fairness of the offer, upon its approval by EFSA, in order to help shareholders evaluate its attractiveness. Accordingly, the Board of Directors will commission an IFA to produce those reports and will announce the results together with its opinion thereon. 

"In addition, the Board of Directors would like to commend its Management team on the great job that they have done amid challenging market conditions in leading the Company back to a healthy level of profitability, as reflected in the strong increase in the value of the share over the last 12 months.

"The Board has full confidence in the current Management team's ability to continue to generate growth and to implement the Company's strategy, including diversification of its products, offering consumer and corporate finance products in Egypt and continuing a regional expansion plan. In addition, the members of the Board welcome any investment by a prominent investor and successful entrepreneur like Engineer Naguib Sawiris and consider this a vote of confidence in the Company and its Management.

"However, the Board feels that the highly dominant position of the Company in the market does not warrant the consideration of consolidation with any of its competitors in Egypt which would likely negatively affect the shareholders' value."


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Source: CPI Financial


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