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Tuesday, 14 August 2018

DPI partners with GB Auto on Mashroey and Tasaheel

M&A WATCH- DPI partners with GB Auto on Mashroey and Tasaheel: Africa-focused private equity firm Development Partners International (DPI) is partnering with GB Auto subsidiary, GB Capital, on the latter’s microfinance and consumer finance firms Mashroey and Tasaheel in a transaction worth USD 45 mn, DPI announced in a press release this morning (pdf). The transaction sees DPI acquiring a 33% stake in MNT Investment BV — GB Capital’s finance subsidiary and parent company of Mashroey and Tasaheel — giving DPI a 25% stake in Mashroey and Tasaheel, GB Auto said in an investor release (pdf). “GB Auto has great belief in the prospects of MNT and with the support of DPI, we see great opportunities for the growth of the business in new markets. DPI have proven experience and expertise of the market and we look forward to working with the team,” GB Auto Chairman and CEO Raouf Ghabbour said.

DPI’s third investment in Egypt: “The investment in MNT marks our third investment in Egypt from our ADP II fund, having now deployed approximately USD 150 mn in Egypt. This underpins our truly pan-African approach to investing into industries and markets that benefit from the growing middle class,” said DPI Partner Sofiane Lahmar. “We look forward to the partnership with GB Capital and Dr. Raouf Ghabbour, in backing Mounir Nakhla and his strong management team. We view MNT Investments as a high growth company operating in a very exciting and fast growing industry in Egypt,” he added.

MNT Investment BV Founder and CEO Mounir Nakhla will stay on to lead the company. “We are very excited to have the backing of DPI, a leading private equity firm in Africa and whom we have known for a long time. We look forward to bringing on their expertise to help us institutionalize and further grow the business,” Nakhla said.

Background: Mashroey offers financing options to entrepreneurs for the purchase of utility vehicles with a focus on the Bajaj brand, which is distributed by GB Auto product, while Tasaheel provides direct microfinance lending to eligible clients, with a focus on group loans to skilled working women.

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