Abu Dhabi-based Chimera Investment said Tuesday that it has acquired a controlling stake in Egypt’s Beltone Financial Holding as part of the private investment firm’s broader strategy to further expand its presence in the Middle East and North Africa region.
Chimera said in a statement that it acquired a 55.9% stake in the Egyptian financial services provider at $0.77 (EGP 1.49) per share. The private investment firm submitted a mandatory takeover offer to buy between 51% to 90% of Beltone’s shares in June.
Last month, Egypt’s Financial Regulatory Authority approved a mandatory tender offer from Chimera Investments’ subsidiary Chimpe 1 to buy a controlling stake in Beltone. The company offered to acquire up to 417.1 million shares in Egyptian Exchange-listed Beltone for $0.78 (EGP 1.485) per share or up to a total of $32.7 million (EGP 619.44 million).
“We will, over the coming period, look to unlock value and implement an all-encompassing transformation plan, aimed at restoring growth and profitability to Beltone,” Syed Basar Shueb, the Chairman of Chimera Investment said in the statement.
Beltone’s board of directors appointed Dalia Khorshid, Egypt’s former investment minister, as the company’s new chief executive officer. The company was founded in 2006 and offers brokerage services, investment banking, asset management, equity research services and a wide range of NBFI services.
The conclusion of the Beltone acquisition is the latest deal by a UAE-based company as Egypt is strengthening its investment partnership with its Gulf allies to shore up its economy that is suffering from the shocks that ripped through commodities markets following Russia’s invasion of Ukraine.
