Back to the complete issue
Tuesday, 14 January 2020

Beltone to offload majority stake in Auerbach Grayson amid losses

M&A WATCH- Beltone to offload majority stake in Auerbach Grayson brokerage amid losses: Beltone Financial intends to sell its 60% stake in New York-based brokerage firm Auerbach Grayson before March in a bid to return the company to profitability, CEO Ibrahim Karam told Reuters. The board, which has authorized Karam to negotiate with prospective buyers, hopes the sale will reduce losses incurred since it bought the stake in 2016. “Although [Auerbach] helps us with a presence in more than 120 markets, the losses that come from it are big. We have a plan … that will be finalised before March,” he said. Beltone’s finances have sunk further into the red over the past three years, reporting a EGP 14.3 mn loss in 2017 and a EGP 82.4 mn loss in 2018. The company lost EGP 66.5 mn over the first three quarters of 2019.

Company targets Africa, Gulf expansion in 2020, eyes NBFS market: Beltone Financial is planning to set up shop in Gulf and African countries this year, Karam told the newswire without providing further details. The company wants to see non-banking financial services account for 30-40% of its revenues within three years, Karam added. The board has already approved setting up two new arms specialized in mortgage finance and financial leasing, in which the company will own a 98% stake, it said yesterday in an EGX disclosure (pdf). The Financial Regulatory Authority is currently looking into requests by Beltone to acquire licenses for the latter two activities, as well as for consumer finance, Hapi Journal reported last week.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; 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.