Yesterday in M&A: A Sri Lankan financial services conglomerate that established a presence in Egypt last year wants to make new acquisitions, and Nilex-listed medical supplier ICMI has signed a purchase agreement to acquire a textile company.

LOLC WANTS MORE LOCAL FIRMS-

(xxSA) Sri Lankan conglomerate LOLC Group wants to acquire several unnamed local firms under a yet-to-be-established holding company in the near future, Shiraz Refai, LOLC head of MENA strategic initiatives, reportedly told Al Mal. The company also wants to add consumer and SME finance to the services offered by its local subsidiary First Microfinance.

LOLC entered the Egyptian market last year with the EGP 80 mn acquisition of First Microfinance. The company said at the time that it would introduce new services including micro ins, micro leasing, and consumer finance starting 2023. LOLC is also planning to expand into a number of countries in the MENA region, Refai is quoted as saying.

ICMI GOING AHEAD WITH BANFF BUY-

ICMI is paying under the odds for Banff: The International Company for Medical Industries (ICMI) on Monday signed a purchase agreement to acquire a 72% stake in Mansoura-based medical textiles company Banff Non Wovens for EGP 23.4 mn, according to an EGX disclosure (pdf). The transaction values Banff at some EGP 32.5 mn — EGP 6.7 mn less than the recent valuation approved by Banff shareholders last week. ICMI paid EGP 9.6 mn towards the acquisition upon signing, with the remainder of the acquisition to take place in stages through the rest of 2023.

What is ICMI — and what does it want with Banff? Founded in 2004, the Nilex-listed healthcare firm manufactures, imports, and exports medical supplies like surgical sutures and needle tips. It reported a net income of EGP 34k on sales of EGP 2.2 mn in 2020, according to its financials (pdf) for that year. Banff produces materials used by the healthcare industry. Its non-woven fabrics are used for goods like masks, surgical gowns and sterilization wraps.