MM Group for industry and International Trade (MTI) announced today that the Board of Directors of Ebtikar- a leading investor in the Non-Banking Financial Services sector in Egypt (a joint venture between MM Group for Industry and International Trade S.A.E- “MTIE.CA” and B Investments Holding S.A.E- “BINV.CA”) has approved the appointment of EFG Hermes to explore the various strategic listing options available to the Company for the purpose of listing the Company or one or more of its subsidiaries on the Egyptian Stock Exchange (EGX). It is noteworthy to mention that MTI holds a c.49.9% stake in Ebtikar.

In exclusive statements to Al Mal, he confirmed that Ibtikar is in an open dialogue with those investors who confirmed that there is a good opportunity to enter the electronic payment market through B and Masary, adding: “The matter has not been resolved yet.”

Ebtikar for Financial Investments intends to complete the restructuring plan for the two companies, “BEE” and “Masary for Electronic Payment” – the two subsidiaries – by mid-2021, in conjunction with its success in securing a number of contracts with various government agencies recently.
Al-Mal met Ayman El-Desouky, CEO of “Ebtikar Financial Investments”, in an extensive dialogue, to find out about the latest developments in the company’s work, in particular, its subsidiaries “Bee” and “Masary”.

According to the Egyptian Financial Regulatory Authority (FRA), the January-May leasing contracts in Egypt have totalled 21.427 billion Egyptian pounds ($1.35 billion), around 4.8 percent up from 20.453 billion pounds in the same period last year.
Bayt El Khebra for Leasing (Technolease) ranked second, garnering 13.33 percent of the Egyptian leasing market share, followed by Al Ahli Leasing Company – part of National Bank of Egypt (NBE) – of 11.37 percent, FRA added.

As the results of the company were approved, which confirmed its leadership in the ranking of mortgage finance companies for the year 2019, and the company maintained its leadership in the market until the end of the first half of 2020

Managing Director Hossam Heiba tells Al Mal. Vitas is looking to borrow EGP 100 mn from local banks and is still in talks with Sanad over the value of the loan.

According to an EGX disclosure (pdf). Ebtikar, which is jointly owned by B Investments (50.1%) and MM Group (49.9%), bought Vitas Group’s entire stake and will now have sole ownership of the firm. MM Group said last month it is looking to take Ebtikar public on the EGX sometime in 2021.

CEO Ayman El Desouki previously said that one of the companies would provide financing for cars and the other for consumer goods. Ibtikar launched its microfinance activity last January through its subsidiary Vitas Misr for Microfinance. We reported in December that Vitas is planning to extend EGP 300 mn in loans to SME clients this year. The company is also in talks with four local banks for a EGP 200 mn loan.

The company said in a statement yesterday (pdf). Ebtikar has effectively doubled its holdings of the company across a series of five transactions in the second half of this year, having held 35.7% prior to July. B Investments holds a 20.3% stake in Ebtikar, while MM Group holds 49.9%. Ebtikar Chairman Aladdin Saba said the latest transaction demonstrates the company’s “confidence” in the Egyptian e-payment sector

Ebtikar for Financial Investment S.A.E (“Ebtikar”), a leading investor in the Non-Banking Financial Services sector in Egypt (a joint venture between MM Group for Industry and International Trade S.A.E- “MTIE.CA” and B Investments Holding S.A.E- “BINV.CA”) announces today the completion of the acquisition of 10.1% of Masary in a transaction valued at c. EGP 42 million, Ebtikar increased its stake in Masary from 35.7% to 45.8%. It is noteworthy to mention that B Investments’ stake in Ebtikar is c. 20%

B Investments’ Ebtikar for Financial Investment announced earlier this week that the consortium — comprising Ebtikar, TCV1 and Acquirement for Investment — had completed the acquisition of ODH’s 87% stake after receiving all required approvals. The sale will see Ebtikar take a c.45% stake in Tamweel Group. B Investments holds a c.20% stake in Ebtikar.

Mohamed ElKahky, the managing director, revealed that the plan aims to disseminate a culture of mortgage financing between all classes especially the low-income and middle income youth over the next 5 years through an expansion by establishing a network of branches in various governorates and regions and diversifying its financing portfolio.

Parent company B Investments said in a bourse disclosure (pdf). B Investments established Ebtikar in June 2017 as a vehicle to invest in the non-banking financial services sector.

The transaction valued Tamweel at EGP 360 mn, ODE said in a regulatory filing (pdf). “The sale will enable ODE to deconsolidate the related debt of Tamweel Group, which stood at EGP 1.1 bn as of 31 March 2018,” the company said. ODE has been divesting its non-core assets to reduce its debt burden.

B Investments wants Vitas’ capital to increase to EGP 80 mn from a current EGP 30 mn. Vitas only has a temporary license from the Financial Regulatory Authority to operate in Egypt, but is expected to receive a full permit soon, Saba said. The investment is part of EGP 600 mn B Investments has allocated this year towards growing its subsidiaries. The vast majority of those funds were proceeds from its IPO last week.