Qalaa Holdings to Sell Stake in Microfinance Leader Tanmeyah to EFG Hermes
24 February 2016 Download
Qalaa Holdings has entered into an agreement to divest its 70% ownership stake in Tanmeyah Microenterprise Services, the leading private-sector provider of microfinance solutions in the Egyptian market
Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), an African leader in energy and infrastructure, announced today that its business unit Finance Unlimited has signed a sale and purchase agreement to sell its entire holding in subsidiary Tanmeyah Microenterprise Services, Egypt’s leading private-sector provider of microfinance solutions, to EFG Hermes, the Arab world’s leading investment bank.
The transaction, which is subject to regulatory approval, customary terms and the satisfaction of conditions precedent, values 100% of Tanmeyah at EGP 450 mn. Qalaa Holdings currently has an effective ownership of 70% in Tanmeyah.
The divestment of Tanmeyah is inline with Qalaa’s strategy, key elements of which include deleveraging at the holding and subsidiary company levels; acquisition of additional stakes in selective investments within its existing portfolio; and share buybacks.
“Since our inception more than a decade ago, Qalaa has been about the building of businesses. We took an interest in Tanmeyah early on, backed its management team, and played an active role in helping the team build it into the private-sector leader in its industry,” said Qalaa Holdings Chairman and Founder Ahmed Heikal.
Established in 2009, Tanmeyah provides financial services to Egypt’s large underserved micro- and very-small-enterprise tiers. Tanmeyah had EGP 509 million in loans outstanding to 108,000 active borrowers at the end of 2015. The company has more than 1,500 employees today at 114 branches across Egypt and has served more than 365,000 clients since inception.
Tanmeyah is the latest in a series of divestments for Qalaa that also includes Misr Glass Manufacturing (MGM), Rashidi El-Mizan and ASEC Minya.
CI Capital acted as financial advisor to Qalaa Holdings on the transaction.
Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), an African leader in energy and infrastructure, announced today that its business unit Finance Unlimited has signed a sale and purchase agreement to sell its entire holding in subsidiary Tanmeyah Microenterprise Services, Egypt’s leading private-sector provider of microfinance solutions, to EFG Hermes, the Arab world’s leading investment bank.
The transaction, which is subject to regulatory approval, customary terms and the satisfaction of conditions precedent, values 100% of Tanmeyah at EGP 450 mn. Qalaa Holdings currently has an effective ownership of 70% in Tanmeyah.
The divestment of Tanmeyah is inline with Qalaa’s strategy, key elements of which include deleveraging at the holding and subsidiary company levels; acquisition of additional stakes in selective investments within its existing portfolio; and share buybacks.
“Since our inception more than a decade ago, Qalaa has been about the building of businesses. We took an interest in Tanmeyah early on, backed its management team, and played an active role in helping the team build it into the private-sector leader in its industry,” said Qalaa Holdings Chairman and Founder Ahmed Heikal.
Established in 2009, Tanmeyah provides financial services to Egypt’s large underserved micro- and very-small-enterprise tiers. Tanmeyah had EGP 509 million in loans outstanding to 108,000 active borrowers at the end of 2015. The company has more than 1,500 employees today at 114 branches across Egypt and has served more than 365,000 clients since inception.
Tanmeyah is the latest in a series of divestments for Qalaa that also includes Misr Glass Manufacturing (MGM), Rashidi El-Mizan and ASEC Minya.
CI Capital acted as financial advisor to Qalaa Holdings on the transaction.