Amazon to acquire direct stake in Valu following deal with EFG Holding

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Cairo: Amazon has agreed to exercise its option to acquire a direct equity stake in U Consumer Finance (Valu), a subsidiary of EFG Holding Company, according to a press release.

Based on an option agreement with EFG Holding in May 2022, Amazon acquired $10 million of the EGX-listed firm’s global depository receipts (GDRs), with the option to convert the GDRs into a direct stake in Valu. This accounts for 4.25% of its share capital.

After obtaining the necessary approval, Amazon will hold around 3.95% of Valu’s shares.

The transaction will be executed on the first trading session of Valu shares on the Egyptian Exchange (EGX) at a price per Valu share of EGP 6.04 through the block trade mechanism.

Karim Awad, Group CEO of EFG Holding, said: "This milestone underscores our unwavering commitment to our shareholders, as we continue to create and manage businesses that deliver exceptional value and long-term rewards."

Walid Hassouna, CEO of Valu, commented: "At Valu, we remain unwavering in our commitment to redefining the customer experience through cutting-edge financial solutions that empower individuals and businesses alike, driving both convenience and opportunity in every interaction."

EFG Hermes served as the sole financial advisor to EFG Holding and Valu on the transaction.

Meanwhile, Valu is set to start trading its shares on the EGX on 23 June 2025.