Ghabbour Auto okays selling 45% stake of its GB Lease to UAE-based Chimera

Doaa A.Moneim , Tuesday 3 Jan 2023

GB for Financial Investment, owned by the renowned Egyptian company GB Auto, has approved the selling of 45 percent of its subsidiary GB Lease to Abu Dhabi-based Chimera in a deal estimated at around $34.6 million.



The approval was sent in a disclosure to the Egyptian Exchange (EGX) at the end of December and released on Monday.

According to the deal, GB Capital will remain the majority shareholder of the GB Lease with 55 percent of shares.

The deal follows the completion of another deal between the two sides in December, through which Chimera had purchased close to 22 percent share of GB’s Netherland-based payment company MNT Investments.

The UAE has initiated a significant investment expansion plan on a public and private levels to support the Egyptian economy in meeting the impact of ongoing global economic crises on the country.

In October, the UAE’s minister of economy stated that the Emirates intends to invest $20 billion over the upcoming 10 years through a cooperation agreement signed between The Sovereign Fund of Egypt and Abu Dhabi Developmental Holding Company (ADQ).

In July, Chimera purchased 259,121,683 shares of Belton Financial Holding – a subsidiary of Orascom Financial Holding – which is owned by well-known Egyptian millionaire Naguib Sawiris.

Also in July, ADQ-owned food and beverage company Agthia acquired a 60 percent stake in Egypt-based Auf Group – a snacks and coffee manufacturer.

Moreover, the company also acquired a 75 percent stake in Egypt-based meat processor Ismailia Investments – also known as Atyab – in September 2021.

In April, ADQ invested about EGP 28.5 billion ($1.8 billion) to acquire shares of five major publicly traded Egyptian companies.

In addition, Abu Dhabi Ports Group announced in July that it reached an agreement to acquire 70 percent of the shares of the International Cargo Subsidiary, which is wholly owned by Egypt-based Transmar and Transcargo International (TCI).

Under the industrial partnership initiative between Egypt, the UAE, Jordan and Bahrain, the UAE’s government announced an investment fund of $10 billion for joint projects with Egypt and Jordan to achieve sustainable economic development among the three countries.

UAE investments in the Egyptian market inched up during the first half of 2022 to post $1.9 billion, representing 169 percent year-on-year growth, compared to $712.6 million recorded in the corresponding period of 2021, according to recent data published by the Central Agency for Public Mobilisation and Statistics (CAMPAS).

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