Qalaa Holdings finalizes the sale of its 70% ownership stake in Tanmeyah Microenterprise Services, a business that it helped grow from an initial concept into an EGP 450 million operation that provides the Egyptian market with much–needed microfinance solutions
Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, announced today that its business unit Finance Unlimited has finalized the sale of its entire holding in subsidiary Tanmeyah Microenterprise Services, Egypt’s leading private-sector provider of microfinance solutions, to EFG Hermes in a transaction that values 100% of Tanmeyah at EGP 450 mn. Qalaa Holdings held an effective ownership of 70% in Tanmeyah.
“We are extremely proud to have played a role in building a business like Tanmeyah that provides much-needed financial solutions to companies and individuals that would otherwise effectively be cut off from the financial system,” said Qalaa Holdings Chairman and Founder, Ahmed Heikal. It’s a company that continues to have excellent growth potential within the current business environment in Egypt and we look forward to seeing Tanmeyah leverage its existing infrastructure and systems to grow its nationwide network of branches even further in the years to come,” added 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.
“Qalaa Holdings has always tried to invest in businesses that spur job creation, develop human capital and provide products or services that will have a positive impact on the lives of average citizens. While Tanmeyah directly addresses those at the base of the pyramid who have no access to the banking system, we have also invested in ECARU, a subsidiary of Tawazon, and Qalaa’s energy play focusing on refused derived fuel for a variety of industries deemed vital for the Egyptian economy.”
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.
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 Stock Exchange) is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, and Mining. To learn more, please visit qalaaholdings.com.
Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Citadel Capital may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.
For more information, please contact:
Ms. Ghada Hammouda
CMO & Head of Marketing Communications
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