JS Global Capital Limited (JSGCL), one of Pakistan’s largest broking and investment banking firm, on Monday announced that its Board of Directors (BoD) has given its approval to acquire EFG Hermes Pakistan Limited.
The company announced the development in a notice to the Pakistan Stock Exchange (PSX).
“Subject to the obtaining of all regulatory approvals and subject to satisfactory results of due diligence and commercially acceptable valuations, negotiations and pricing, the Board of Directors of the Company at their duly convened meeting held on January 23, 2023, have provided their in-principle consent and approval to invest into and acquire majority shares and control of EFG Hermes Pakistan Limited,” read the notice.
JSGCL added that the proposed investment and acquisition of majority shares and control of EFG Hermes Pakistan Limited remains subject to all final corporate and regulatory approvals, including, but not limited to, approvals by the Securities and Exchange Commission of Pakistan, Pakistan Stock Exchange and Competition Commission of Pakistan, and subject to favorable due diligence and valuation results.
Last week, EFG Hermes Pakistan, in a notice to PSX, informed, “JSGCL intends to acquire 51% issued and outstanding ordinary shares and control of EFG Hermes Pakistan Limited.”
The development comes after EFG Hermes Holding S.A.E., a Cairo-based financial services company and the parent company of EFG Hermes Pakistan, disclosed that it was pursuing exit options from two markets namely Pakistan and Jordan.
The company back then stated that it is currently in the advanced stages of agreeing on an exit from a third market that will be announced later.
EFG Hermes pursuing exit from Pakistan, JS Global Capital expresses acquisition interest
"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 then.
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.
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