Egypt - EFG and GB Auto to purchase of 75% Tokio Marine
Tuesday, 06 16 2020, Category: Insurance and Reinsurance, Country: Egypt
EFG Hermes, GB Capital to close Tokio Marine majority stake acquisition before the month is out: A consortium of EFG Hermes and GB Auto’s non-banking financial services arms will complete the purchase of 75% Tokio Marine Egypt Family Takaful in 2Q2020, which ends on 30 June, EFG Finance CEO Walid Hassouna said, according to Masrawy. The EGP 84.75 mn transaction will give each of EFG Finance and GB Capital a 37.5% stake in the life insurance company.
The acquisition plays into EFG’s goal of consolidating its gains as the country’s leading non-banking financial services outfit, Hassouna said at a roundtable for media. EFG currently offers a number of consumer finance products (ValU), e-payments (PayTabs), and microfinance (Tanmeyah), as well as other services including leasing and factoring. The region’s leading investment bank plans to see non-banking financial services accounting for 50% of its profits by the end of 2021. Non-bank services accounted for 25% of revenues in 2019.
A mortgage finance arm in partnership with GB Capital will be up and running in 3Q2020, Hassouna said, according to Hapi Journal. The company, Bedaya, is a partership between GB Capital, EFG and Talaat Moustafa Group and will be led by Tarek Abou Gendia. Hassouna said in December that the company has hired a management team and set up two headquarters in east Cairo and Sheikh Zayed.