Egypt regulator greenlights UAE’s Chimera’s request to acquire Beltone Financial holding

Doaa A.Moneim , Tuesday 19 Jul 2022

Egypt’s Financial Regulatory Authority (FRA) approved a request on Tuesday filed by UAE-based investment company Chimera Investments for a non-binding offer to acquire a controlling stake in Egypt-based Beltone Financial Holding.

Beltone Financial
File Photo: A worker is seen at the headquarters office of Beltone Financial in Cairo, Egypt, October 26, 2015. REUTERS

 

The FRA said that this approval does not imply an approval on the deal itself and its related details.

Chimera submitted the request in June, which was the second acquisition offer Beltone received that month, as an investor alliance led by Egypt-based WM Consultancy submitted a non-binding offer to the FRA to purchase a majority stake in Beltone at a minimum of 51 percent and a maximum of 90 percent at a preliminary price of EGP 1.35 per share.

According to Chimera’s submission, the company plans to also acquire between 51 percent and 90 percent of Beltone’s shares on the Egyptian Exchange (EGX) under the articles of Law No.95 for 1992 that govern the capital market in Egypt.

The offer estimates the initial price at EGP 1.4 per share, while the final price will be set according to the results of the venture study of the offer that is being conducted, according to Chimera.

Furthermore, the company said that it will submit all the required documents, including the purchase offer and the related legal documents, as well as fulfilling all required procedures once it claims all the approvals from the concerned bodies in Egypt and the UAE.

Established in 2006, Beltone is an investment company that focuses on investment banking and brokerage. It has been listed on the EGX since April 2008.

In September 2021, the FRA approved raising Beltone’s issued and paid-up capital to EGP 926.9 million, up from EGP 891.3 million.

So far, the UAE has shown a significant appetite for acquisition deals in the Egyptian market in 2022.

During July, Abu Dhabi-based food and beverage company Agthia acquired a 60 percent stake in Egypt’s Auf Group — a healthy snacks and coffee manufacturer.

In April, Abu Dhabi Developmental Holding Company (ADQ) — also known as the Abu Dhabi Wealth Fund — completed acquisition deals for five companies in Egypt, including private sector institutions and state-owned firms with a total value of $1.8 billion.

In September 2021, the company also acquired a 75 percent stake in Egypt-based meat processor Ismailia Investments (AKA Atyab).

Furthermore, in May, the UAE’s government announced an investment fund worth $10 billion under the Partnership Industrial Initiative that encompasses Egypt, Jordan, and the UAE and aims to implement sustainable economic development among the three countries.

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