Intermarket Securities eyes acquisition of EFG Hermes Pakistan

Intermarket Securities Limited, a brokerage firm, has expressed its intention to acquire at least 51% of the issued and outstanding ordinary shares and control in EFG Hermes Pakistan Limited.

The news comes as EFG Hermes Holding S.A.E., a Cairo-based financial services company and the parent company of EFG Hermes Pakistan Limited, said last month it is pursuing exit options from Pakistan and Jordan.

In a notice to the Pakistan Stock Exchange (PSX) on Wednesday, EFG Hermes Pakistan said: “It is hereby notified that EFG Hermes Pakistan Limited (the “Target Company”) has received an intention from Intermarket Securities Limited (the “Acquirer”) to acquire at least 51% of the voting shares and control of the Target Company and beyond the thresholds prescribed under Section 111 of the Securities Act, 2015.

“This intention has been notified to the Board of Directors of EFG Hermes Pakistan Limited on February 14, 2023,” read the notice.

Two other companies, JS Global Capital Limited (JSGCL), a subsidiary of JS Bank Limited, and AKD Securities have also shared their intentions to acquire majority of ordinary shares and control of EFG Hermes Pakistan.

In fact, JSGCL, one of Pakistan’s largest broking and investment banking firm, said that its Board of Directors has “provided their in-principle consent and approval to invest into and acquire majority shares and control of EFG Hermes Pakistan Limited.”

EFG Hermes Holding has said its exit from Pakistan and Jordan will not have any material impact on its revenues, as combined revenues from the two markets 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 said last month.