Karachi, In a significant shift from its previously announced intentions, Multiline Securities Limited, representing Intermarket Securities Limited (IMS), has officially withdrawn its Public Announcement of Intention (PAI) to acquire a majority stake in EFG Hermes Pakistan Limited ("EFG Pakistan"). Initially declared on November 21, 2023, the acquisition aimed to secure at least 51% of the total issued and paid-up share capital of EFG Pakistan.
Recent developments reveal that the Boards of Directors for both IMS and EFG Pakistan have reached an in-principle agreement to merge IMS into EFG Pakistan, pursuant to a Scheme of Amalgamation to be submitted to the Sindh High Court. This strategic decision marks a pivot from the acquisition path previously pursued by IMS towards a collaborative merger approach with EFG Pakistan.
As a result of this new direction, IMS is retracting its PAI related to the transaction, in alignment with Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeover) Regulations 2017. The formal notice of this withdrawal is scheduled for publication in both an English and Urdu daily newspaper on February 1, 2024.
This merger represents a significant realignment of strategies for both entities, potentially setting a new course for their operations and market presence in Pakistan's financial sector. Stakeholders are advised to stay informed on further developments regarding this merger as both companies proceed with the legal and operational processes to finalize the amalgamation.