• Mergermarket: Egypt’s M&A deal value accounts for 75.1% of the North African value in 2019 with two deals in energy and telecoms made up the bulk of it.

Cairo, Egypt: HC Securities & Investment sponsors the second annual Egypt M&A and Private Equity Forum held by Mergermarket, the leading provider of M&A data and intelligence.

Mergermarket announced: “Egypt’s M&A deal value accounts for 75.1% of the North African value and 58.3% of its volume, up from 48.4% and 39.5%, respectively, in year to date (YTD) 2019.  Two deals made up the bulk of Egypt’s deal value in YTD 2019, both inbound M&A deals. The first was the acquisition of a stake in Gulf of Suez Petroleum Company by Dragon Oil Plc, worth USD 600m. The second deal was between Netherlands-based telecoms services company, VEON Ltd and Global Telecom Holdings S.A.E., worth EUR 578m. VEON Ltd has agreed to acquire all the outstanding shares of Global Telecom Holding S.A.E. that it does not own by way of a mandatory takeover offer.”

Mergermarket also stated that the rise of inbound M&A is because the Egyptian pound’s devaluation against foreign currencies led to low valuations, which has made Egyptian companies more attractive to foreign investors.

It was declared during the forum that general M&A in Egypt remained robust in YTD 2019, with 14 deal worth USD 1.3bn compared to 15 deals worth USD 1.9bn in YTD 2018, despite the global slowdown in dealmaking, which dropped by 11.4% in 3Q19. It was concluded that, after the flotation of the Egyptian pound in 2016, investors adopted a "wait and see" approach to assess the post-flotation economic situation. This has changed since 2018, driven by currency stability and economic reforms and has resulted in confidence by investors and more M&A activities. 

Hussein Choucri - Founder, Chairman and Managing Director, HC Securities and Investment commented: “Egypt is seeing more M&A activities from foreign investors compared to previous years. The overall positive macroeconomic outlook, successful fiscal and monetary policies and bullish business environment have made Egypt a high rank investment destination. We continue to be active in M&A in Egypt and the Gulf where we advised strategic and financial investors on successful transactions during the past 12 months in the packaging, oil and gas, food & beverage and healthcare sectors. We are quite pleased with our association with Mergermarket and look forward to having a successful conference.”

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About HC Securities & Investment:

HC Securities & Investment (HC) is a leading investment bank in Egypt and the MENA region. Since its inception in 1996, HC has utilized its relationship-driven insights, local and regional market knowledge, and industry-specific expertise and strong execution capabilities to provide its clients with a wide range of services in investment banking, asset management, securities brokerage, research, custody, online trading and private equity through its offices in Egypt and the UAE (DIFC). HC Investment Banking has an outstanding track record of advising leading corporates in Egypt and the MENA region on M&A, capital market, and financing transactions in excess of USD5bn. HC Asset Management, winner of the 2018 MENA Fund Manager Awards, now manages 14 mutual funds for commercial banks and portfolios for institutions and sovereign wealth funds with assets under management in excess of EGP6bn. HC Brokerage is ranked among the top brokers in Egypt and provides a wide array of services, including research and online trading to institutional and retail clients.

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