Planet’s Buyout Deal Is Just A ‘Hoax’, Propaganda

The Egyptian market witnessed a series of heated arguments broke out between EFG-Hermes Holding (HRHO.CA) and Planet IB within the last few weeks. This was after Planet IB had offered an acquisition deal and then moved on blaming EFG-Hermes for causing its shareholders’ loss if they insist on making QInvest deal.

The Egyptian Financial Supervisory Authority (EFSA)’s last announcement made Monday has ended that heated war between the two companies as EFSA asserted that it had not received any buyout offers for any of the EGX-listed companies during the last week and until the moment of issuing the statement. EFSA’s announcement had come quite different from the consortium’s statements during the last few weeks.  This means Planet’s buyout deal was just one of its coming marketing campaigns in the Egyptian market.

Yasser El Mallawany, CEO of EFG-Hermes Holding, had told Amwal Al Ghad earlier this month that Hermes did not refuse Planet IB’s buyout deal as the Group is still receiving all the buyout offers to be reviewed after the EFSA sending approvals.

“If Planet IB is really serious regarding its buyout offer for EFG-Hermes. It should first present it to the EFSA. EFG-Hermes would study the offer afterwards.” Mallawany added

Yasser El Mallawany had also refuted all the rumors which says the Group is selling all its investments in the Egyptian market, as he said; “EFG-Hermes Group has sold some of its activities. The outcome shall be in the form of capital raise for the Group.”

Wael El Nahas, a financial analyst with HA Securities, has described Planet’s buyout offer as ‘hoax’ and an indirect propaganda for the company.

“Such manipulations the market witnesses nowadays require an immediate legal intervention so that we will not face from similar manipulative actions within the coming period.”  El Nahas added

“I demand that EFSA shall make all the EGX-listed companies, in case of receiving any buyout offers, to submit the letter which talks about the offer before such negotiations erupt.”

Mohamed Anwar, analyst at Wedian Securities Stock Brokerage & Bookkeeping,  said Planet’s announcement of offering a buyout deal to seize 100% of Hermes’ stakes was a kind of propaganda for the newly-formed consortium.