First Abu Dhabi Bank (FAB) has withdrawn its offer for a controlling stake in Egyptian investment bank EFG Hermes, citing global market uncertainty.
“After careful consideration and in the context of ongoing global market uncertainty and volatile macro-economic conditions, First Abu Dhabi Bank has decided to withdraw its non-binding offer submitted on February 9,” the lender said in a statement on Thursday. “Egypt remains a strategically important market for FAB.”
FAB made a non-binding offer to buy at least 51% in EFG Hermes for 19 Egyptian pounds ($1.21) a share. The offer valued the North African lender at 18.5 billion Egyptian pounds ($1.18 billion).
Shares in FAB fell by almost 2% in early trade, while EFG Hermes slumped by almost a fifth. EFG was trading at 15.46 Egyptian pounds ($0.8420), compared with FAB's offer of 19 pounds per share.