Egypt's EFG Hermes Holding said on Wednesday it has received a non-binding offer from First Abu Dhabi Bank (FAB), UAE’s biggest lender, for a potential cash acquisition of a majority stake. 

The offer is for not less than 51 percent of the issued shares of the company at an indicative purchase price of 19 Egyptian pounds ($1.20) per share, the Cairo-based investment bank said in a statement on the London Stock Exchange. 

The transaction and the final purchase price are conditional upon the completion of a due diligence and of the required regulatory approvals, following which a mandatory tender offer will be made to all shareholders of EFG Hermes, it added. 

Earlier, Reuters reported citing sources that Rothschild is advising FAB on the deal. The deal would be FAB’s second major transaction in Egypt after it bought the Egyptian business of Lebanon’s Bank Audi last year, it added. 

FAB, the UAE's biggest lender, reported a net profit of $3.41 billion last year, up about 19 percent from 2020. EFG Hermes is Egypt's biggest investment bank and has a market value of over $970 million. 

(Writing by Brinda Darasha; editing by Seban Scaria) 

brinda.darasha@lseg.com 

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