Planet Not To Go On Hermes Buyout Deal: CEO

Planet IB has closed EFG-Hermes (HRHO.CA) acquisition file after Egyptian Financial Supervisory Authority (EFSA) statement about offers to buy listed companies.

Mahmoud Abdellatif, CEO of Planet, stated that his company will not go on in this acquisition deal after EFSA statement.

He added that planet is currently studying new acquisition deals and its plans to establish investment bank still on its agenda, Alborsa newspaper reported.

The EFSA had asserted Monday in a statement Amwal Al Ghad had a copy, that it had not received any buyout offers for any of the EGX-listed companies during the last week and until the moment the EFSA has issued this statement.

In the meanwhile, the EFSA has emphasized that  it shall inform the Egyptian Exchange the buyout offers it receives regarding the companies which listed or subscribed shares in the EGX. EFSA added that it shall also send the details of these offers to the EGX so as to adopt the suitable legal measures afterwards.

Such statements made by individuals or entities on offering buyout deals to EGX-listed companies without following the regulations can have unlawful effect on the prices of the targeted companies’ shares.

“Such an action is considered a violation against the Capital Market regulations which required in return adopting legal measures against those who announced the offers.” EFSA added

“Issuing such statements that imply unconfirmed information violates indeed the main objectives mentioned in Chapter 12 of the Capital Market Law (CMA) – article (327) which prohibits manipulations in securities prices, prevents market instability and puts into consideration the targeted company’s interests.”