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Tuesday, 20 December 2022

Abu Dhabi’s Chimera Investments to acquire 45% of GB Lease

Chimera to acquire 45% of GB Lease: GB Capital has agreed to sell a 45% stake in GB Lease to our friends at Abu Dhabi-based investment firm Chimera Investments for EGP 855 mn, parent company GB Auto said in an EGX disclosure (pdf) yesterday. GB Capital will retain the remaining 55% stake in the company, which the transaction values at EGP 1.9 bn, according to our math.

A 2022 close? The acquisition is expected to close before the end of the year, GB Auto IR head Marina Kamal told us.

We knew this was coming: Chimera and GB Capital have been in talks over the acquisition since September. The GB Auto subsidiary has been mulling the partial selldown of its leasing business for over a year, during which time the company had received offers from several firms.

It’s not final yet: The transaction is still pending board approval at GB Auto, the company said in a separate disclosure (pdf). The company has tapped Baker Tilly for an independent assessment to determine the fair value of GB Lease’s shares, the disclosure said. The board will then decide whether the value the companies have agreed on is appropriate, Kamal told us.

This isn’t GB Auto and Chimera’s first tie-up: GB Auto sold a 7.5% stake in MNT Investments to Chimera last week as part of a larger agreement that will see Chimera acquire a 21.7% stake in the Netherlands-based payments company. The remaining 14.2% is being sold by other unnamed investors in MNT.

Chimera likes our NBFS sector: The Abu Dhabi-based investment firm also acquired a 56% stake in Beltone Financial in August for around EGP 384.8 mn, with Orascom Financial Holding divesting all of its 259.1 mn shares.

Advisors: Arqaam Capital is acting as the sell-side advisor to GB Capital and Matouk Bassiouny & Hennawy is the sell-side legal advisor, while Adsero-Ragy Soliman and Partners are buy-side counsel.

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