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Wednesday, 19 June 2019

ODE offloads 87% stake in Tamweel for EGP 313 mn

M&A WATCH- ODH to use proceeds from Tamweel sale to pay down debt: Orascom Development Egypt (ODE) will use EGP 313 mn in cash proceeds from its sale of Tamweel Group to pay down debt, it said in a disclosure to the stock exchange (pdf). B Investments’ Ebtikar for Financial Investment announced earlier this week that the consortium — comprising Ebtikar, TCV1 and Acquirement for Investment — had completed the acquisition of ODH’s 87% stake after receiving all required approvals. The sale will see Ebtikar take a c.45% stake in Tamweel Group. B Investments holds a c.20% stake in Ebtikar.

Background: The stake sale had been in the making since the second half of 2016, when ODH announced (pdf) that it would offload the assets as part of a plan to cut its EGP 1 bn in debt. Tamweel Group is made up of four companies operating in mortgage finance, factoring, leasing, collection and insurance brokerage. The company is valued at EGP 360 mn.

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