Abraaj snaps up EFG stak

The board of directors of EFG-Hermes has accepted Abraaj Capital’s bid for 25% of EFG-Hermes. The board accepted Abraaj’s offer to subscribe to 97,074,010 of the common shares of EFG by way of a capital increase exclusively issued in favour of Abraaj Capital at a price per share of EGP 30.

The acquisition of these shares will be made through a wholly owned subsidiary, Abraaj Egypt limited, and the transaction is valued at US $ 505 million. The transaction is still subject to the approval of EFG-Hermes shareholders and relevant regulatory authorities. If approved, the transaction would position Abraaj Capital as the single largest shareholder in EFG-Hermes, which in turn is the largest shareholder in Bank Audi, Lebanon.

Arif Naqvi, CEO and executive vice chairman of Abraaj Capital, stated: “This transaction is a strategic and long term investment for Abraaj and it shows our confidence and commitment to the future of Middle East. EFG-Hermes is widely regarded as the leading investment bank in the region, our strategy moving forward will be to catalyse and accelerate the regional development plan of EFGHermes to become the foremost integrated financial services institution in the region. EFG’s footprint currently gives it access to 88% of the investment banking fee pot in the Middle East.”

Hassan Heikal, CEO of EFG, added: “By endorsing the transaction with Abraaj Capital to become the largest shareholder in EFG-Hermes, the board is providing a vote of confidence in Abraaj as a strategic shareholder. This move is in line with EFG-Hermes’ stated strategy to aggressively expand its regional presence across all business lines, thereby creating a regional financial services powerhouse.”

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