Egyptian Exchange releases details of expected acquisition of Beltone

Doaa A.Moneim , Wednesday 20 Jul 2022

The Egyptian Exchange (EGX) announced on Wednesday the measures of the acquisition deal of Belton Financial Holding anticipated to be conducted by UAE-based Chimera Investments.

Beltone Financial
Egypt s EGX announces measures of Beltone acquisition deal. AFP


Egypt’s Financial Regulatory Authority (FRA) approved on Tuesday the request the company submitted for a non-binding offer to acquire a controlling stake in Egypt-based Beltone Financial Holding.

EGX set the price at EGP 1.4 per share for a total stake of 417,130,874 shares, representing 90 percent of Belton’s shares listed in the EGX.

The bid will commence on 21 July over 10 days and is expected to be concluded on 3 August, according to EGX.

In June, Chimera submitted its request, the second acquisition offer Beltone received last month. The first was by an investor alliance led by Egypt-based WM Consultancy, which 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 acquire between 51 percent and 90 percent of Beltone’s shares according to Law 95/1992 that regulates Egypt's capital market.

The company said it will submit the required documents, including the purchase offer and legal documents, and will fulfil the 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.

The deal is part of Chimera’s expansion plan in the Middle East and North Africa (MENA) region.

In 2021, the company stated that it is investing $100 million in Egyptian developer Gemini Global Development, a subsidiary of Ora Developers owned by businessman Naguib Sawiris, with the aim of acquiring a minority equity in the company.

The UAE has been showing a significant appetite for acquisition deals in the Egyptian market in 2022.

In 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 acquired a 75 percent stake in Egypt-based meat processor Ismailia Investments, aka Atyab.

In May, the UAE government announced an investment fund to the tune of $10 billion under the Partnership Industrial Initiative that encompasses Egypt, Jordan, and the UAE to implement sustainable economic development projects between the three countries.

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