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Wednesday, 11 May 2022

EBRD, SPE Capital, Amethis acquire financial services player GlobalCorp

European consortium acquires GlobalCorp: The European Bank of Reconstruction and Development (EBRD), SPE Capital, and Amethis have acquired a 90% stake in non-banking financial services firm GlobalCorp, the company said in a press release (pdf). The consortium paid EGP 914.7 mn for 22.2 mn shares in an OTC transaction, Al Borsa reports, citing sources familiar with the matter. GlobalCorp CEO Hatem Samir holds the remaining 10% stake.

Cash injection + expansion ahead: The consortium plans to raise the firm’s capital by EGP 150 mn through a capital increase, Shahir ElFaramawy, head of corporate development at GlobalCorp, told Enterprise. This will help the company expand its services and the sectors in which it operates, the press release reads. It will also work with the management team to help the company develop its infrastructure and technology. GlobalCorp will retain its management team and its name, ElFaramary confirmed.

Who was a seller? Private equity outfit Ezdehar sold its 60% stake in the firm, while German development bank KfW’s Sanad fund sold its 30% stake, ElFaramary told us. The two entities were among GlobalCorp’s founding investors in 2015, and both said last year they were looking to exit the firm after hitting their target return on investment.

This is the EBRD’s first investment in an Egyptian financial institution, and its first partnership with a leasing and factoring firm in Egypt, said Heike Harmgart, EBRD’s managing director for the Southern and Eastern Mediterranean region. “This investment will support a leading financial company to provide financing to an important segment of the Egyptian economy, covering small and medium businesses,” Harmgart said.

Amethis makes its Egypt debut: The investment is also Africa-focused, Paris-headquartered Amethis’ first in Egypt, “which is now a core market for our funds,” said Investment Director Adnane Zerhouni. Amethis last year announced plans to invest more than EUR 30 mn in Egyptian SMEs after it hit a first close of its second MENA fund, and to open an office here. The acquisition marks SPE Capital’s second investment in Egypt through its SPE AIF I fund, which previously purchased a 30% stake in Future Pharma.

What is GlobalCorp? GlobalCorp provides leasing and other financial and advisory services to companies in industries including real estate, transportation, health, education and pharma. The lender also focuses on SMEs and green finance, which account for over 25% of its portfolio. The company has extended EGP 13 bn (USD 715 mn) worth of credit. “The acquisition proves how successful the company is, because it’s able to attract foreign investors through a model that sees the shareholders replaced every five years,” ElFaramawy said.

ADVISORS- Helmy, Hamza and Partners — a member firm of Baker McKenzie International — acted as legal advisor to the consortium, while PwC was financial advisor. The firm also tapped IBIS Consulting as ESG and impact advisors, as well as other commercial and technical consultants. Kamco Investment Company was was sell-side financial advisor, while Matouk Bassiouny provided legal counsel to the sellers

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