The Egyptian Financial Supervisory Authority (EFSA) has asserted that it had not received any buyout offers for any of the EGX-listed companies during the last week and until the moment the EFSA has issued this statement.
Worth mentioning, Planet IB Consortium had made a buyout offer to seize 100% of EFG-Hermes Holding (HRHO.CA) stakes.
In a statement made by Planet, the consortium mentioned that it had informed EFG-Hermes BOD of its intention to offer an acquisition deal offer before Hermes held its EGM last May. Planet has offered to pay a minimum of EGP 13.50 per share.
“Planet is thoroughly prepared for submitting its buyout offer to seize 100% of EFG-Hermes stakes.” Planet added
In the meanwhile, the EFSA has emphasized that it shall inform the Egyptian Exchange the buyout offers it receives regarding the companies which listed or subscribed shares in the EGX. EFSA added that it shall also send the details of these offers to the EGX so as to adopt the suitable legal measures afterwards.
Such statements made by individuals or entities on offering buyout deals to EGX-listed companies without following the regulations can have unlawful effect on the prices of the targeted companies’ shares.
“Such an action is considered a violation against the Capital Market regulations which required in return adopting legal measures against those who announced the offers.” EFSA added
“Issuing such statements that imply unconfirmed information violates indeed the main objectives mentioned in Chapter 12 of the Capital Market Law (CMA) – article (327) which prohibits manipulations in securities prices, prevents market instability and puts into consideration the targeted company’s interests.”
