May 31 2012
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Planet IB Intends to Submit Offer to Acquire 100% of Regional Investment Bank EFG Hermes Holding
A consortium led by international investment and commercial banking professionals intends to make a tender offer for up to 100% of leading regional investment bank EFG Hermes to enhance shareholder value; prominent Egyptian business leaders and leading Arab investors have made equity commitments to the bid
Planet IB Ltd., a firm led by international professionals of the investment and commercial banking industries and backed by prominent Egyptian business figures and Gulf-based investors, announced today its intention to acquire EFG Hermes Holding SAE (Cairo: HRHO.CA • London: HRHOq.L), the leading investment bank in the Arab world.
Planet IB Ltd. intends to make a cash offer for 100% of EFG Hermes Holding, including all of its lines of business, namely Securities Brokerage, Investment Banking, Asset Management, Research and Private Equity, as well as EFG Hermes' controlling interest in Crédit Libanais, a leading Lebanese commercial bank. The intention to offer is subject to the customary procedures and approvals for a transaction of this nature.
The transaction would be structured as a shareholder takeover and buyout and is backed with equity from leading global and regional institutions.
"The proposed acquisition keeps a flagship Egyptian multinational intact and prevents its breakup," said Ahmed El Houssieny, Chief Executive Officer of Planet IB. "Our goal is to maximize shareholder value going forward through a crystal-clear strategy that will see EFG Hermes operate as a universal bank with a fully controlled and integrated business."
El Houssieny was most recently Managing Director at Citadel Capital, the leading private equity firm in Africa and the Middle East with US$ 9.5 billion in investments under control, where he was responsible for managing the firm's relationships with banks and other financial institutions, as well as overseeing Citadel Capital investments in the financial services industry in sectors including investment banking, commercial banking and microfinance.
As Chairman, Abdel Latif led the restructuring and privatization of Egypt's Bank of Alexandria through the sale of an 80% stake to IntesaSanpaolo IMI of Italy in a transaction valued at US$ 1.6 billion.
"Our bid is expected to be at a customary premium to the trading price," Abdel Latif emphasized, explaining that Planet IB Ltd. intends to make a tender offer for up to 100% of EFG Hermes as required by Egyptian capital markets regulations.
EFG Hermes reported an 81% drop in net profit after taxes and minority interest to EGP 133 million in fiscal year 2011, with the Investment Banking platform (as distinct from the Commercial Bank) reporting a net loss of EGP 102 million in the period, according to publicly available figures.
Planet IB believes that the intended offer will be attractive to the shareholders of EFG Hermes Holding.
About Planet IB
Planet IB Limited is a firm seeking control of EFG Hermes, the leading investment bank in the Arab world. The firm is led by professionals in the MENA finance industry with proven track records in the creation of shareholder value in the investment banking, securities brokerage, commercial banking, risk management and commercial law industries. Learn more at: www.planetinvestmentbanking.com
DISCLOSURE: Planet group of companies and its related persons and parties may (and do) hold shares in EFG Hermes at any time.
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© Press Release 2012
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