GB Auto merges with R.G. Investment

ArabFinance: GB Auto (AUTO), a leading automotive company in the Middle East and non-bank financial services provider in Egypt, announced Tuesday that shareholders have approved a restructuring that will position key subsidiary GB Capital to pursue a range of potential strategic option.

Shareholders convening at an extra-ordinary general meeting in Cairo approved on Tuesday a resolution that empowers management to merge GB Auto with R.G. Investments (RGI). GB Auto currently owns 99.9% of RGI.

The net effect of the transaction, which will take place at book value, will have no impact on the consolidated financial divs of GB Auto.

“The merger of RGI with GB Auto is the first step in positioning GB Capital to pursue potential strategic options in the future. It removes an intermediary layer between the two companies that no longer serves a practical purpose,” said GB Auto CEO Raouf Ghabbour.

“GB Capital is one of the largest, most-established and most-diversified companies in Egypt’s attractive non-bank financial services sector and one of the fastest growing. This transaction will position GB Capital to efficiently pursue any one of a number of potential strategic options for growth in the years to come.”

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