EFG Hermes to acquire 76pc stake in Tanmeyah
CAIRO, February 24, 2016
EFG Hermes, a leading investment bank in the Arab world, has signed a binding deal to acquire 76.7 per cent of Tanmeyah Microenterprise Services, a provider of comprehensive microfinance solutions to business owners across Egypt.
The EGP345 million ($43.9 million) transaction will see EFG Hermes acquire a 70 per cent stake owned by Qalaa Holdings’ Finance subsidiary in addition to acquiring a portion of the shares held by Tanmeyah’s management, representing an additional 6.7 per cent of the company, said a statement.
Following the acquisition of the stake, the closure of the transaction is subject to regulatory approvals including the consent of the Egyptian Financial Supervisory Authority (EFSA) as well as the satisfaction of certain conditions precedent.
Karim Award, chief executive officer, EFG Hermes Group, said: “The acquisition comes as the first of a number of strategic moves that EFG Hermes intends to undertake during the coming 12 months and that will put in place the foundation for the firm’s growth over the coming five years.
“Upon completion of the transaction, Wael Ziada will be appointed chief executive officer of EFG Hermes Finance with a mandate to grow both the leasing business and Tanmeyah in addition to spearheading our future expansion into other, complementary fields.
“Wael will be responsible for streamlining operations and ensuring the creation of synergies between Tanmeyah and our future expansion into new finance product lines.” - TradeArabia News Service
