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Monday, 21 November 2022

GB Auto okays MNT stake sale after accepting fair value study

GB Auto approves MNT stake sale: GB Auto’s board has greenlit plans to sell a 7.5% stake in MNT Investments to Abu Dhabi-based investment firm Chimera Investments after approving the results of a fair value study (pdf), it said in an EGX disclosure (pdf) yesterday.

ICYMI- The Netherlands-incorporated fintech — majority-owned by GB Auto subsidiary GB Capital — agreed last month to sell a 21.7% stake to Chimera in a transaction that would value the company USD 800 mn.

Chimera’s bid now looks generous: Alpha Capital’s fair value study puts MNT’s equity value at around EGP 17 bn (c. USD 691.9 mn). GB Auto will sell a 7.5% stake in MNT to Chimera for USD 60 mn with an earnout component that could reach USD 71.3 mn. By our math, Chimera’s offer values MNT at USD 800 mn, a 15.6% premium to the fair value study — and that’s excluding the earnout.

Who else is selling? We’re still not sure who of MNT’s other investors are selling shares to Chimera. Among the company’s shareholders are our friends at both Africa-focused private equity firm Development Partners International and Apis Partners.

Remember: Chimera is also buying a 45% stake in GB Capital’s leasing arm.

What’s MNT? MNT is the parent company of asset-based lender Mashroey and microfinance player Tasaheel, and also holds a stake in tuk-tuk ride sharing, delivery, and microfinance business Halan.

Advisors: Arqaam Capital is sell-side financial advisor to GB Auto, while White & Case is international legal counsel and Matouk Bassiouny local legal counsel. Adsero — Ragy Soliman & Partners is local counsel to Chimera, while Shearman & Sterling is doing international duties.

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