KEY THEMES
In our STANDPoint 2022, we named five different themes for Egyptians stocks in 2022. Theme #3 was M&As (read Figure 1), with potential action across multiple sectors, especially banks, health care, non-banking financials (NBFS), real estate, and telecom services & IT. Yesterday, this third theme has manifested itself in the NBFS sector with the surprise tender offer by FAB [FAB ADX], UAE’s #1 bank, to acquire a minimum of 51% of EFG Hermes Holding [HRHO], the MENA region’s largest investment bank, at an initial price of EGP19/share. This is 28% above our 12MPT of EGP14.8/share and a 21% premium to Tuesday’s closing price of EGP15.74/share but only 8% above a market consensus of EGP17.6/share. We note that HRHO’s stock price has been on the rise (+19%) for the last 8 consecutive trading sessions