By Hossam Mounir and Mohamed Alaa El-Din
A consortium of three international financial investors acquired 85% of ‘Fawry’ for electronic payments. The acquisition amounted to $100m, (approximately EGP 783m).
Approximately 20% of the shares were acquired by the Egyptian American Enterprise Fund, 40% by Helios International Partners (on behalf of the funds it consults for), and 25% of the share was acquired by the MENA Long Term Value Fund.
The remaining shares in Fawry were distributed, with 5% for the International Finance Corporation (IFC), while 10% represents the management’s share.
The entrance of new investors in the company will reinforce the company’s opportunities to diversify its activities and expand abroad, on the regional and African levels, according to Fawry CEO Ashraf Sabry.
He further noted that the deal reveals Fawry’s confidence in investors and the company’s leadership in the field of e-payment, in addition to the company’s capability to attract new international investors. He noted that this affirms the availability of significant investment opportunities in the company, highlighting that Fawry will keep innovating in this field.
Meanwhile, EFG Hermes acted as advisor to the selling shareholders as well as the executive broker in this deal.
The acquisition’s consortium was represented by a number of legal advisors, including Khudair Office, Noor and Taha in cooperation with Al-Tamimi and Company, as well as Norton Rose Fulbright LLP office. As for the selling shareholders, they were represented by Zaki Hashem and Partners Attorneys at Law, while the selling management team was represented by Ibrachy and Dermarkar law firm.
Fawry is the biggest e-payment network in Egypt. It was established in 2008, providing payment services to clients through several canals and more than 50,000 service points, while the company serves more than 15 million clients in Egypt.
More than 1m transactions are concluded daily through Fawry’s network, depending on specialised techniques.
Fawry’s services include payment collection, mobile phone recharge and e-payment facilitation, besides cash collection for companies. In 2014, Fawry’s profits amounted to approximately EGP 210m.