Back to the complete issue
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

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 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; 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.