INVESTMENT WATCH- EFG acquires four schools in EGP 1 bn transaction from TMG, GEMS tapped as operator: EFG Hermes acquired four national and British schools in Cairo’s suburbs from the Talaat Moustafa Group (TMG) in a transaction worth EGP 1 bn (USD 56 mn), according to a regulatory filing (pdf). Under the agreement, EFG Hermes’ merchant banking arm will provide capital for the project. The schools, which are located in TMG developments Rehab City and Madinaty, will be managed by Dubai-based operator GEMS Education, which recently entered a JV with EFG Hermes.

Background: EFG had announced last week that it was forming a 50/50 JV with GEMS to set up a new K-12 education platform in Egypt that would be funded by GEMS and an investment vehicle managed by EFG’s private equity division. The TMG transaction is part of the platform’s drive to invest c. USD 300 mn in Egypt’s education sector over the next five years. The company plans to acquire more than 30 schools and enroll as many as 40,000 students in them within that time frame, Private Equity Head Karim Moussa said yesterday, Reuters’ Arabic service reports.

GEMS as well has more in store for education in Egypt. The agreement with EFG Hermes and TMG is only a “first step” for the UAE company, which is open to other partnerships and investment opportunities in the country, board member Zulfe Ali tells Al Mal. GEMS should have more clarity on its Egypt strategy in six months’ time, he adds.