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Sunday, 3 January 2021

A spate of M&As to end the year

Abu Dhabi Commercial Bank (ADCB) has acquired a 51.5% stake in Alexandria Medical in a AED 64 mn (EGP 275 mn) transaction, Hapi Journal reported. The acquisition is part of a settlement owed to the bank by Emirati healthcare company NMC Health, which was brought to the edge of collapse last year after hedge fund Muddy Waters questioned its financial reporting that ultimately forced the company into administration. The company began selling off assets in May to raise funds to repay its creditors. The stake in Alex Medical — which was held by NMC’s former chairman and CEO BR Shetty — was used as collateral for Shetty’s loans from ADCB. The Indian b’naire, who had previously held 87.6% of Alex Medical’s shares, quit Alex Medical’s board last year after the results of the investigation came to light.

Advisors: Prime Securities Brokerage executed the transaction, while Zulficar & Partners provided counsel to the brokerage firm.

The National Bank of Egypt (NBE) acquired a 24% stake in Raya subsidiary Aman Holding in a EGP 480 mn transaction, the bank said in a bourse filing (pdf) on Wednesday. The acquisition will help the bank expand its non-banking financial services and micro-project financing, NBE Chairperson Hisham Okasha said. The bank was competing with 11 other bidders for the shares in the NBFS player and was expected to acquire 20-25% stake. Raya established Aman Holding last January as a parent for its three non-banking financial services arms: Aman Financial Services, Aman E-Payments, and Aman Microfinance.

Advisors: The NBE tapped Grant Thornton as financial advisor and Matouk Bassiouny & Hennawy as counsel.

State-owned investment bank NI Capital closed on Thursday its EGP 75.2 mn acquisition of Bank Audi’s Arabeya Online Brokerage, the local press reports. NI Capital and Bank Audi had signed the sale and purchase agreement in November, saying at the time the transaction was subject to regulatory clearance. Bank Audi had signaled in February it was looking to offload the entirety of its 100% stake in Arabeya Online shortly after announcing it was looking to sell its Egypt unit to First Abu Dhabi Bank amid the ongoing Lebanese financial crisis. Arabeya Online was founded in 2006 by current Public Enterprises Minister Hisham Tawfik and his brother, Hany.

Advisors: NI Capital appointed Shahid Law Firm as counsel and Mazars Mostafa Shawki as tax advisor, while Ernst & Young consulted on digital transactions. Bank Audi tapped Zulficar & Partners as advisor and Broadgate Advisers as financial advisor.

Beltone Financial is on track to finalize the sale of its 60% stake in New York-based brokerage Auerbach Grayson after earning approval from the US Financial Industry Regulatory Authority (Finra) last week, the investment bank said in a disclosure (pdf). The proceeds from the sale, which is valued at USD 2.8 mn (EGP 45 mn), will be earmarked for the expansion of Beltone’s non-banking financial services platforms and to support its other services, the statement says. Beltone had signed the stake over to a group of unnamed investors back in April after announcing last January its intention to offload its stake as a result of “large losses” it incurred since its purchase in 2016.

B Investments Holding is moving ahead with the sale of its entire 60% stake in tableware manufacturer Béard in a EGP 19 mn transaction after the decision was approved by B Investment’s board of directors on Wednesday, according to a bourse disclosure (pdf). Shahid Law Firm is buyer’s counsel on the transaction, we’re told.

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