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Sunday, 30 October 2022

MNT agrees to sell 21.7% stake to Chimera Investments

Chimera snaps up c.22% of MNT Investments: Netherlands-based MNT Investments — which is majority-owned by GB Auto subsidiary GB Capital — agreed to sell a 21.7% stake to a unit of Chimera Investments, GB Auto said in an EGX disclosure (pdf) on Thursday.

The sellers: GB Auto is selling a 7.5% indirect stake in MNT Investments for USD 60 mn with an earnout component that could reach USD 71.3 mn, according to the statement. The sale reduces GB Auto’s indirect stake in MNT Investments to 49.5%. We don’t know who the other sellers are, but Africa-focused private equity firm Development Partners International is among MNT Investments’ current shareholders.

GB Auto has been mulling a partial sale of MNT Investments since March and sold a 5% indirect stake in MNT to unnamed foreign investors in a EGP 352.7 mn transaction last year.

Chimera likes GB — and our wider NBFS sector: The Abu Dhabi-based investment firm recently entered talks with GB Capital to buy a 45% stake in its leasing arm, GB Lease. Chimera also acquired a 56% stake in Beltone Financial for around EGP 384.8 mn in August.

What is MNT? The Netherlands-based payments company is the parent company of asset-based lender Mashroey and microfinance player Tasaheel. Last year they entered into a share swap agreement with Egyptian fintech / delivery / ride-hailing company Halan to create super-app MNT-Halan.

Advisors: Arqaam Capital acted as exclusive sell-side financial advisors to GB Auto, while White & Case acted as international legal counsel and Matouk Bassiouny served as local legal counsel. Adsero – Ragy Soliman & Partners acted as local counsel to Chimera, while Shearman & Sterling was international legal counsel.

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