EFG Hermes pursuing exit from Pakistan, JS Global Capital expresses acquisition interest

EFG Hermes Holding S.A.E., a Cairo-based financial services company, is pursuing exit options from two markets namely Pakistan and Jordan, according to a disclosure document posted on its website, which added that the move "will not have any material impact on the revenues of the Firm".

The company stated this on Tuesday, adding that it is currently in the advanced stages of agreeing on an exit from a third market that will be announced later.

"The transactions in Pakistan and Jordan are both in the preliminary stage (a binding offer has been received in respect of Jordan and an expression of interest has been received in respect of Pakistan)," read the statement.

However, the potential transactions are subject to due diligence and other conditions, meaning that they may not materialise, it added.

The company further shared that the exit from Pakistan and Jordan will not have any material impact on its revenues, as their combined revenues represented less than 1% of the group revenues in the nine-months of 2022 and in the full year of 2021.

"Given our strong belief that these markets’ economic and capital markets potential remains very high, EFG Hermes will remain committed to serving its institutional clients base pursuant to our expected exits, as we will continue to indirectly execute trades, provide select research coverage, and pursue investment banking activities in these markets.

"However, our involvement will just take a different, more capital-efficient form," EFG Hermes added.

Its Pakistani company, EFG Hermes Pakistan Limited, informed the Pakistan Stock Exchange (PSX) on Wednesday that JS Global Capital Limited (JSGCL), a subsidiary of JS Bank Limited, intends to acquire majority ordinary shares and control of EFG Hermes Pakistan Limited.

“Next Capital Limited, vide its letter dated January 17, 2023, which was disclosed via PUCARS system of the Pakistan Stock Exchange Limited, has announced that on behalf of JS Global Capital Limited (herein referred to as the "Acquirer"), Next Capital Limited has submitted the Acquirer's public announcement of intention to acquire at least 51% shareholding and control of EFG Hermes Pakistan Limited ("Target"),” read the notice.

EFG Hermes Holding S.A.E. is an Egyptian financial services company present in the Middle East, North Africa, Sub-Saharan Africa, and South Asia regions. It specialises in securities brokerage, asset management, investment banking, private equity and research.

It was the first foreign investment bank to directly enter Pakistan since 2008 and the first foreign broker to have a local footprint in the country.

The move followed the firm's acquisition of Pakistani brokerage Invest and Finance Securities Ltd. (IFSL).