JS Global Capital Limited (JSGCL), one of Pakistan’s largest broking and investment banking firms, has decided not to pursue the acquisition of a 51% stake and control of EFG Hermes Pakistan amid “unsuccessful negotiations.”

The development was shared by Next Capital Limited, manager to the offer, in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“We Next Capital Limited, as ‘Manager to the Offer’, hereby submit acquirer’s announcement to withdraw its intention to acquire at least 51% of the issued and outstanding ordinary shares and control of EFG Hermes Pakistan Limited,” read the notice.

“Due to unsuccessful negotiations with the seller, it is no longer feasible for JSGCL to continue with the intended takeover. The acquirer hereby withdraws its intention to acquire at least 51% of the issued and outstanding ordinary shares and control of EFG Hermes Pakistan Limited,” it added.

Back in January, 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.

“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.