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Wednesday, 18 May 2022

Amazon has five years to swap EFG GDRs for valU shares

Amazon has five years to swap EFG GDRs for valU shares: EFG Hermes has given Amazon a five-year window to exercise its option to convert its global depository receipt (GDR) holdings into an equity stake in the bank’s consumer finance arm valU, the bank said in an EGX disclosure (pdf). The e-commerce giant recently agreed to purchase USD 10 mn worth of EFG’s London-listed GDRs with an option to convert them into a 4.255% equity stake in the company. This can be done before or in the event of a “qualified liquidity event” such as if a third-party investor invests in valU, or if the company is sold, IPOed, or otherwise listed. The transaction represents about 1% of EFG’s GDRs, which have a current market cap of USD 976 mn.

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