Egypt's EFG Hermes Holding has decided to appoint Goldman Sachs as financial advisor on a non-binding offer by First Abu Dhabi Bank (FAB) for a potential cash acquisition of a majority stake. 

In a statement to the London Stock Exchange on Monday, the Cairo-based investment bank said it will allow FAB to conduct due diligence within a scope to be agreed upon between the two parties in good faith, and subject to receipt of the regulatory approvals.

Earlier in February, the UAE’s biggest lender made an offer for a potential acquisition of not less than 51 percent of the issued shares of EFG Hermes at an indicative purchase price of 19 Egyptian pounds ($1.20) per share. 

Following its board meeting, EFG Hermes said Monday it also decided to appoint an independent financial advisor to determine the valuation of the company “in the event that a mandatory tender offer is launched by FAB.” 

White & Case has been named legal counsel to advise the board on the offer, the bank said, adding it will make further disclosures in due course. 

(Reporting by Brinda Darasha; editing by Cleofe Maceda) 

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