12 November, 2015

Who's who in Egypt's e-payment services platform Fawry after takeover

Thursday, 12 November 2015

Thursday, 12 November 2015

A consortium of three international financial investors acquired 85 percent of Fawry, the leading electronic bill payment platform in Egypt, for US$100 million (around 773 million Egyptian pounds in time of acquisition).

Approximately 20 percent of the shares were acquired by the Egyptian American Enterprise Fund (EAEF), 40 percent by Helios International Partners (on behalf of the funds it consults for), and 25 percent of the share was acquired by the MENA Long Term Value Fund.

The remaining shares in Fawry were distributed as 5 percent for the International Finance Corporation (IFC), while 10 percent 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, said Fawry CEO Ashraf Sabry.

Helios Investment Partners is an Africa-focused investment firm managing funds totalling over US$ 3 billion. Helios' diverse LP base comprises a broad range of the world's leading investors, including sovereign wealth funds, corporate and public pension funds, endowments and foundations, funds of funds, family offices and development finance institutions across the US, Europe, Asia and Africa.

Established in 2004, led and managed by a predominantly African team and based in London, Lagos and Nairobi, Helios has completed investments in countries across the African continent, including Nigeria, Ghana, Kenya, Tanzania, Angola, South Africa and Morocco. Helios' portfolio companies operate in more than 35 countries in all regions of the continent. Helios bridges international capital and know-how to African talent and enterprise. The firm has a record of successful investment in businesses from start-ups to large corporate carve-outs, building African market leaders in core economic sectors and driving strong returns via portfolio operations.

Meanwhile, the Egyptian American Enterprise Fund (EAEF) is a United States Government funded private entity inspired by the Enterprise Fund model successfully developed in Central and Eastern Europe in the 1990s. Since the inception of the Enterprise Fund Program, over US$ 1.1 billion has been invested directly alongside US$ 6.9 billion invested by private parallel funds.

With an authorized capital of US$ 300 million, EAEF is committed to promoting financial inclusion, job creation and increasing foreign and domestic investment in Egypt, with a broader target of long term sustainable economic development. EAEF's primary mission is to stimulate the Egyptian private sector by providing access to investment and human capital, modern technologies as well as best business practices, while achieving financial profitability.

The fund is led by a board of directors that is primarily comprised of American, Egyptian-American and Egyptian professionals.

On the other side, EFG-Hermes, the leading investment bank in the Arab world, and Wellcome Trust formed a partnership in 2010 to invest in public and private long-term opportunities in the Middle East and North Africa (MENA), with EFG-Hermes acting as the Fund's dedicated Investment Manager. The vehicle is the first of its kind in the region with a hybrid public and private-equity investing style seeking concentrated, long-term investment opportunities in the best in class companies in the region. The current size of the fund is USD 500 million.

© Amwal Alghad 2015