Monday, June 4, 2012

EFG Hermes is taking legal action to protect the firm and its shareholders

Cairo - EFG Hermes (HRHO) announced this morning that it will be taking all necessary legal action to protect the company, its employees and investors following the aggressive media campaign launched by Planet IB Ltd following what it called its tender offer to acquire 100% of EFG Hermes Holding shares.

To date, EFG Hermes has only received two letters from Planet IB Ltd stating intent to acquire 100% EFG Hermes Holding shares at a minimum price of EGP 13.5 per share. Such an offer is conditional upon the completion of legal, financial and technical due diligence during a period of 60 days.
Neither letter from Planet IB Ltd provided any legal commitment nor guarantee to EFG Hermes or to its shareholders to conclude such a tender offer. Additionally, neither proof of availability of funds nor information about the identity of the investors providing the necessary funds for the tender offer has been presented to the Company. Although both letters were read and discussed during EFG Hermes’ EGM that was held on Saturday, 2nd of June 2012, yet the Company’s shareholders have overwhelmingly voted in favour of the strategic alliance with QInvest.
The strategic alliance entered into with QInvest includes the transfer of ownership of a number of subsidiaries currently held by EFG Hermes to the joint venture company, EFG Hermes Qatar. The subsidiaries to be transferred have contributed on average c20% to the total EFG Hermes Holding revenues in 2011 and 2010 respectively. The JV with QInvest is not an acquisition of 60% of EFG Hermes and cannot be compared with Planet IB Ltd’s offer to acquire 100% of EFG Hermes Holding shares.
Standard regulatory requirements require all tender offers to be filed with the EFSA under the provisions of Chapter XII of the Executive Regulations to the Capital Market Law no. 95 dated 1992. Such tender offers may be filed without the need for any approval from the shareholders, the general assembly or the management of EFG Hermes, as the ultimate decision rests with the shareholders of the Company who may accept the offer by selling their shares or reject the offer by refusing to sell their shares in the offer.
Planet IB has not filed to date an application with EFSA and has only launched a media campaign misleading the market by confusing and inaccurate information and causing damage to the Company, its shareholders and those trading on its shares. EFG Hermes has therefore decided to take legal action to protect the interests of its shareholders and employees.

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