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Wednesday, 19 February 2020

Fawry transfers 64% of its main shareholder stake to indirect shareholders

Fawry transfers majority shareholder stake to indirect shareholders: Egyptian e-payment company Fawry has transferred the ownership of the 63.99% stake held in the company by PSI Netherlands Holding to indirect shareholders, finishing a restructuring process detailed in its listing prospectus (pdf) published ahead of its IPO on the EGX last August, Hapi Journal reports. More than 40 companies and individuals — which together own PSI Netherlands — received the shares at EGP 8 apiece. The International Finance Corporation, the Egyptian American Enterprise Fund, and Link Holdco are among the list of investors who now directly own stakes in the company. Prior to the transaction, they held indirect stakes.

Avoiding an MTO: Distributing ownership among its indirect shareholders allows Fawry to bypass Egyptian securities regulations that would have required it to make a mandatory tender offer. The Financial Regulatory Authority agreed not to force the company into an MTO earlier this month. EFG Hermes acted as the broker for the EGP 3.6 bn transaction.

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