Back to the complete issue
Wednesday, 19 July 2017

EFG Hermes buys 50% stake in FIM for USD 21.5 mn

M&A WATCH- EFG Hermes announced it has entered “into definitive agreements to invest” USD 21.5 mn in Frontier Investment Management (FIM). The transaction, once completed, will leave EFG Hermes owning a 50% stake in FIM, with the remaining half still owned by FIM’s founder and CEO, Hedi Ben Mlouka. FIM will become part of EFG Hermes’ asset management business “while retaining its independence, brand name and autonomy in investing across regional and frontier capital markets.” EFG Hermes says, “FIM will continue executing its current strategy of delivering unique returns to its institutional investor base.” The investment bank will seek the consent of its clients to contribute its regional (non-Egypt related) portfolios and funds into FIM during the coming six months. Through the investment in FIM, EFG Hermes has positioned itself as the manager of choice for institutional investors seeking specialized active fund managers with a strong on the ground knowledge of MENA and frontier markets, said EFG Hermes Group CEO Karim Awad.

…Separately, EFG Hermes expects to serve as debt adviser to three Middle East companies on transactions worth a combined USD 700 mn by the end of 2018. The firm gave no further details about the three companies. EFG Hermes also plans to grow its financial leasing portfolio to EGP 5 bn from about EGP 2 bn currently, said Walid Hassouna, CEO of EFG Hermes Finance and head of the firm’s debt structuring division, told Reuters. The firm has also obtained preliminary approval from Egypt’s financial regulator to begin offering factoring services and could roll out of the offering as early as 4Q2017.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.