AKD Group also looks to acquire majority stake in EFG Hermes Pakistan

25 Jan, 2023

AKD Group Holdings (Pvt.) Limited has expressed its intention to acquire at least 51% of the issued and outstanding ordinary shares and control in EFG Hermes Pakistan Limited.

The development was announced by AKD Securities Limited, the manager of the offer by AKD Group Holdings (Pvt) Limited, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We, AKD Securities Limited, have been appointed as the manager to the offer by AKD Group Holdings (Pvt) Limited (the Acquirer), in accordance with regulation 6(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

“On behalf of the Acquirer, we are pleased to submit a Public Announcement of Intention to acquire at least 51% of the issued and outstanding ordinary shares and control in EFG Hermes Pakistan Limited (the Target Company),” read the notice.

Last week, EFG Hermes Pakistan Limited informed the bourse that JS Global Capital Limited (JSGCL), a subsidiary of JS Bank Limited, intends to acquire the majority of ordinary shares and control of EFG Hermes Pakistan Limited.

The development comes after it was learnt that EFG Hermes Holding S.A.E., a Cairo-based financial services company and the parent company of EFG Hermes Pakistan Limited, was pursuing exit options from two markets namely Pakistan and Jordan.

As per the disclosure document posted by the company on its website, the move "will not have any material impact on the revenues of the firm".

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.

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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