June 4 (Bloomberg) -- EFG-Hermes Holding SAE said it is taking legal measures to protect shareholders after Planet IB Ltd. announced the intention to buy the biggest publicly traded Arab investment bank.
Planet, a group of investors, hasn’t submitted a tender offer to Egyptian regulators, EFG-Hermes said in an e-mailed statement today. The Cairo-based bank also said Planet’s proposed bid lacked details, including on investors and their commitment.
Planet’s Chairman Mahmoud Abdel Latif told Bloomberg today the company is in discussions with “different channels, including the regulator” about a possible tender offer. The company submitted letters of intent to the regulator and the tender offer is subject to due diligence, he said.
Shareholders of EFG-Hermes voted June 2 in favor of creating an investment bank in which Qatar’s QInvest LLC will own 60 percent. The decision was made after two letters from Planet were discussed, EFG-Hermes said in the statement today.
Planet offered 13.5 Egyptian pounds a share, or 23 percent more than EFG-Hermes’ closing price on May 31. The offer amounted to 6.5 billion Egyptian pounds ($1.1 billion).
EFG-Hermes shares declined 1.2 percent to 10.88 pounds at the 2:30 p.m. close in Cairo, paring the advance for the year to 8.7 percent. That compares with a 27 percent rally in the benchmark EGX30 Index.
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