FAB withdraws offer for Egypt’s EFG Hermes

FAB withdraws offer for Egypt’s EFG Hermes

Shares in FAB closed 3.25 per cent down at Dh22.64 with 224.79 million shares changing hands on Abu Dhabi Securities Exchange, which fell 1.4 per cent to 9,947.74 points

FAB already owns banking licences in Egypt — its own subsidiary and the Egyptian unit of Lebanon’s Bank Audi, which it acquired last year. — File photo

Published: Thu 14 Apr 2022, 3:47 PM

First Abu Dhabi Bank (FAB) on Thursday announced that the bank has withdrawn its offer for a controlling stake in EFG Hermes due to uncertain global market.

In a statement, the Abu Dhabi-based banking giant said it withdrew the non-binding offer submitted in February to buy at least 51 per cent of Egyptian investment bank.

“After careful consideration and in the context of ongoing global market uncertainty and volatile macroeconomic conditions, FAB has decided to withdraw its non-binding offer submitted on 9 February 2022,” according to the statement.

FAB’s offer valued Egypt’s biggest investment bank at nearly $1.2 billion.

Shares in FAB closed 3.25 per cent down at Dh22.64 with 224.79 million shares changing hands on Abu Dhabi Securities Exchange, which fell 1.4 per cent to 9,947.74 points.

EFG Hermes shares also slumped by almost a fifth and was trading at 15.46 Egyptian pounds ($0.8420)