REG - EFG Holding S.A.E. - Board Approval For Listing U Consumer Finance

EFG Holding SAEAnnouncement

19/03/2025 08:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250319:nRSS2837Ba&default-theme=true

RNS Number : 2837B  EFG Holding S.A.E.  19 March 2025

EFG Holding Announces Board Approval for Listing of U Consumer Finance, Known
by Its Brand Name Valu, on the Egyptian Exchange and Distribution of Part of
EFG Holding's Profits to Shareholders in the Form of Shares in U Consumer
Finance in Preparation for Trading its Shares on the Egyptian Exchange

-      Valu proudly embraces this innovative step toward its listing,
marking a significant turning point in its journey. The brand name Valu has
become synonymous with "Buy-Now, Pay-Later" in Egypt. This achievement
exemplifies EFG Holding's profound commitment to innovation and value creation
for its shareholders, further strengthening Valu's position as a pivotal
player in Egypt's fintech sector.

-      Valu is a leader in the consumer finance sector, commanding a
c.24% market share in Egypt. With financing provided for 7.8 million
transactions, Valu reinforces its position at the forefront of this vital
industry, showcasing the company's outstanding financial performance.

-      Valu has recently secured a fintech license from the FRA, enabling
it to deliver a comprehensive end-to-end digital customer journey. This
milestone further solidifies Valu's unwavering commitment to offering
innovative financial solutions in the market.

Cairo, March 19, 2025

EFG Holding S.A.E. (EFG Holding), a financial institution with a universal
bank in Egypt and the leading investment bank in the Middle East and North
Africa (MENA), disclosed today that its Board of Directors has passed several
resolutions regarding the listing of U Consumer Finance S.A.E. ("U"), known by
its brand name Valu, on the Egyptian Exchange (EGX). The Board of Directors
decided the following:

·    To restructure U so that EFG Holding owns 20.488% of U's capital
directly.

·    To convene an Ordinary General Assembly of EFG Holding to deliberate
on the distribution of a portion of the distributable profits as per the
financial statements for the fiscal year ending December 31, 2024. This
distribution will be made to shareholders in the form of shares in U,
equivalent to the above-mentioned 20.488% stake (instead of cash dividends),
in preparation for U's trading on the Egyptian Exchange following the
completion of its listing procedures, registration with the Financial
Regulatory Authority (FRA), and approval of the disclosure report for trading
purposes.

o  The distribution will be based on the book value of U's shares and will be
made pro-rata to the ownership of all EFG Holding shareholders, with
fractional shares rounded in favor of minority shareholders. Consequently,
each shareholder of EFG Holding on the record date (to be announced later)
will receive shares in U at book value and will have the right to trade them
on the Egyptian Exchange at U's market price after the commencement of
trading. It is important to note that EFG Holding will not make any cash
distributions as part of this process.

o  The right to receive shares of U Consumer Finance S.A.E. will be granted
to shareholders of EFG Holding S.A.E., including the Employee Stock Option
Program (ESOP) - per paragraphs 7 and 8 of Article 2 of the ESOP Statutes - on
the record date, which will be disclosed later, based on detailed procedures
and further information that will be announced following the decision of the
Ordinary General Assembly.

·    Approval has been granted for the listing of U's shares on the
Egyptian Exchange, to be followed by the completion of the necessary
registration procedures with the FRA and the ratification of the disclosure
report for trading purposes, paving the way for the commencement of trading
based on the forthcoming disclosure report that will be submitted to the FRA
for ratification.

Following the completion of the aforementioned restructuring, distribution,
and trading procedures, EFG Holding will retain at least a 67% indirect stake
in U through its subsidiaries.

The Board was presented with the fair value report for U's share price,
prepared by the independent financial advisor, Keys Financial Consulting
S.A.E. (BDO). This report, approved by U's General Assembly, established the
fair value of U at C. EGP 15.586 billion (fifteen billion and five hundred
eighty six million Egyptian Pounds) and is indicative in nature. U's shares
will be traded, and the opening price and price limits for the inaugural
trading session shall be determined based on the mechanisms implemented by the
Egyptian Exchange.

It is important to highlight that these procedures represent a new and
innovative legal framework proposed by EFG Holding, which has received
provisional approval from the FRA in an unprecedented move, leveraging the
mechanism of dividend distributions by listed companies and the activities of
their subsidiaries to broaden the ownership base and facilitate listing and
trading on the stock exchange.

EFG Holding and U Consumer Finance have appointed EFG Hermes Promoting and
Underwriting S.A.E. as the sole financial advisor and manager of the EGX
listing and trading process, along with Zulficar & Partners Law Firm
serving as legal advisor on the listing and trading process.

In this context, Karim Awad, Group CEO of EFG Holding, remarked, "The
restructuring process underscores our unwavering commitment to our
shareholders and our ambition to enhance value through innovative strategies.
This pivotal step is designed to maximize returns for our investors while
fostering the sustainable growth of Valu, which is poised to emerge as an
independent, listed entity with EFG Holding retaining a majority stake. This
initiative not only adds immediate value for investors but also grants them a
unique opportunity to engage directly in the future growth of a company that
has transformed consumer finance in the Egyptian market, setting a transparent
benchmark for Valu's evaluation that is expected to surpass prior analyst
valuations. By distributing part of Valu's shares, we are establishing a new
and innovative standard for offering shares in subsidiaries, enhancing
liquidity, and expanding our investor base. Valu, built on the solid
foundation of EFG Holding's support, has achieved remarkable milestones, and
we take immense pride in its journey thus far. We eagerly anticipate a future
characterized by continued progress and prosperity in the next phases of
growth. I would also like to extend my gratitude to the team at the FRA,
particularly Chairman Dr. Mohamed Farid, for their invaluable support
throughout this process-an essential factor in the efficient and seamless
execution of this innovative model."

Walid Hassouna, CEO of Valu, stated, "We firmly believe that financial
empowerment begins with ensuring seamless access to financial services for
all. Since our inception, we have centered our vision on placing customers at
the heart of everything we do, delivering innovative solutions that genuinely
transform lives. As the leader in the consumer finance sector-holding a
remarkable c.24% market share in Egypt-we have facilitated financing for 7.8
million transactions, solidifying our position as the foremost player in this
arena. We are not merely reshaping the industry's landscape; we are also
unlocking new opportunities for individuals and businesses to thrive and
prosper. This achievement stands as a testament to the trust our customers
place in us, the unwavering dedication of our team, and the ongoing support
from our partners.

Today marks the start of a new and impactful chapter for Valu, backed by EFG
Holding and the strength of our ecosystem. Our vision is to create a future
where financial inclusion is a universal reality, accessible to everyone-not
just a privileged few. Valu proudly embraces this innovative listing, which
signifies a pivotal moment in our journey. The name Valu has become synonymous
with the "Buy-Now, Pay-Later" model in Egypt, reflecting our role as a
powerful force in the fintech sector and establishing our brand as a hallmark
of accessible financial solutions."

Valu has recently secured a fintech license from the Financial Regulatory
Authority (FRA), enabling it to deliver a comprehensive end-to-end digital
customer journey. This milestone underscores Valu's steadfast commitment to
introducing innovative solutions in the market. With this license, Valu is
positioned to revolutionize how Egyptians engage with financial services. The
company will provide seamless electronic verification, digital contracts, and
secure digital record-keeping, all of which will significantly enhance the
customer experience. These advancements will foster greater financial
inclusion, offering a faster, safer, and more streamlined digital experience
that empowers individuals and businesses to access financial services
effortlessly from anywhere.

-ENDS-

About Valu:

Valu is the leading universal financial technology powerhouse offering
customers and businesses convenient and comprehensive financial solutions.
Under its product universe, Valu pioneered Buy-Now, Pay-Later (BNPL) solutions
in the MENA region through U, providing customizable financing plans for up to
60 months across more than 8,500 stores and online platforms - covering a
diverse array of categories, including home appliances, electronics, home
finishing, furniture, residential solar solutions, healthcare, education,
travel, and fashion, among others. Valu also offers investment products, an
instant cash redemption program, savings solutions, and a financing solution
to facilitate the purchase of big-ticket items up to EGP 60 million in the
luxury space through the AZ Valu fund and EFG Hermes ONE, Sha2labaz, Akeed,
and Ulter respectively. In addition, Valu offers business-to-business
solutions through Valu Business. Valu had recently introduced its prepaid card
and co-branded credit card in collaboration with Visa. As an award-winning
fintech player in the MENA region, Valu embraces a progressive mindset with an
agile workforce committed to architecting innovative financial solutions.

 

About EFG Holding

EFG Holding (EGX: HRHO.CA - LSE: EFGD) is a financial institution that boasts
a remarkable 40-year legacy of success in seven countries spanning two
continents. Operating within three distinct verticals - the Investment Bank
(EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and
Commercial Bank (Bank NXT) - the company provides a comprehensive range of
groundbreaking financial products and services tailored to meet the needs of a
diverse clientele, including individual clients and businesses of all sizes.

 

EFG Hermes, the leading investment bank in the Middle East and North Africa
(MENA), offers extensive financial services, encompassing advisory, asset
management, securities brokerage, research, and private equity. In its
domestic market, EFG Holding serves as a universal bank, with EFG
Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah,
a microfinance player, EFG Corp-Solutions, which provides leasing and
factoring services, Valu, a universal financial technology
powerhouse, Bedaya for mortgage finance, Kaf for insurance, Fatura, a
technology-backed B2B marketplace and EFG Finance SMEs which provides
financial services for small and medium enterprises. Furthermore, the company
delivers commercial banking solutions through Bank NXT, an integrated retail
and corporate banking product provider in Egypt.

 

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait |
Bahrain | Kenya | Nigeria |

 

Learn more about us at http://efghldg.com/ (http://efghldg.com/)

 

For further information, please contact:

 

May El Gammal

Group Chief Marketing & Communications Officer of EFG Holding

melgammal@efghldg.com (mailto:melgammal@efghldg.com)

 

Omar Salama

Associate Director of Communications of EFG Holding

osalama@efghldg.com (mailto:osalama@efghldg.com)

 

The EFG Holding Public Relations Team

PublicRelations@efghldg.com (mailto:PublicRelations@efghldg.com)

 

Note on Forward-Looking Statements

In this press release, EFG Holding may make forward-looking statements,
including, for example, statements about management's expectations, strategic
objectives, growth opportunities, and business prospects. These
forward-looking statements are not historical facts but instead represent only
EFG Holding's belief regarding future events, many of which, by their nature,
are inherently uncertain and are beyond management's control and include,
among others, financial market volatility; actions and initiatives taken by
current and potential competitors; general economic conditions and the effect
of current, pending, and future legislation, regulations and regulatory
actions. Accordingly, the readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which they are
made.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  STRSFESAUEISESD