M&A WATCH- Ahly Capital to fully acquire Pharos Securities: National Bank of Egypt-owned Al Ahly Capital has signed a final agreement with Pharos Holding to acquire 100% of its brokerage arm, Pharos Securities, NBE said in a statement carried by Al Mal. The acquisition is reportedly worth EGP 120 mn, according to the local press. The agreement is still pending approval from the Financial Regulatory Authority; signoff could come this week. Pharos Securities’ current CEO, Essam Abdel Hafiz, will retain his position, while Al Ahly Capital Managing Director Karim Saada has been tapped as non-executive chairman of Pharos Securities.

The agreement comes as Pharos begins a pivot to focus on non-banking financial services, with financial inclusion expected to "play a very important part of the equation," Elwy Taymour tells Enterprise. The company is looking to “significantly grow” its micro-financing business either alone or alongside partners, and is also eyeing other lines of business. “We believe that the non-bank financial services pie in Egypt will continue to grow quite substantially going forward when it comes to these lines of business as financial inclusion takes hold in the country and more and more people become banked,” Taymour said.

Background: Talks between Pharos and Prime Holdings on the sale of Pharos’ investment banking and brokerage divisions broke down back in August 2019.

Advisors: PwC acted as financial advisor for Al Ahly Capital on the transaction, while KPMG was tax advisor. Our friends at ALC Alieldean, Weshahi & Partners acted as legal counsel for Al Ahly Capital, and Al Tamimi & Company was legal counsel for Pharos.