Abu Dhabi’s Chimera to buy majority stake in Egypt’s Beltone in expansion push

The company aims to acquire between 51% and 90% of Beltone for an offer price of $0.079 per share

The 15 May Bridge crosses over the Nile River in Cairo, Egypt. Abu Dhabi's Chimera aims to acquire a majority stake in Egypt-based Beltone Financial Holding. EPA
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Abu Dhabi-based investment company Chimera plans to buy a controlling stake in Egypt's financial services provider Beltone as it continues to expand its portfolio.

Chimera submitted an Acquisition Intention Letter to Egypt’s Financial Regulatory Authority to acquire between 51 per cent 90 per cent of Beltone for an offer price of 1.485 Egyptian pounds ($0.079) per share, it said in a statement on Sunday.

Chimera has appointed Matouk Bassiouny and Hennawy as legal counsel on the transaction and the offer is pending regulatory approval.

“The acquisition is in line with our expansion strategy and further enhances our regional footprint,” Syed Shueb, chairman of Chimera, said.

“Chimera aims to unlock value and implement an ambitious transformation plan, delivering a full turnaround and restoring growth and profitability to Beltone.”

Beltone is a financial services provider in Egypt and the Middle East and North Africa region offering brokerage, investment banking, asset management and equity research services.

Set up in 2007, Chimera is part of Abu Dhabi’s Royal Group, which is active in a number of sectors, including property, construction, food and beverages, hospitality, aviation and health care. The group has more than 60 companies under its umbrella and employs 20,000 people.

The latest announcement comes as Chimera continues to expand its portfolio across the region. Last year, the company said it is investing $100 million in Egyptian developer Gemini Global Development to acquire a minority equity in the company to support its expansion in the Arab world's most populous country.

Gemini is a subsidiary of Ora Developers, which is owned by Egyptian billionaire Naguib Sawiris.

It also set up the UAE’s first special purpose acquisition company (Spac) in partnership with Abu Dhabi holding company ADQ last December with the aim of investing in tech-focused businesses. The company named, ADC Acquisition Corporation, began trading on the Abu Dhabi Securities Exchange last month after it raised Dh367m ($99.9m) through an initial public offering.

Other UAE companies expanding into Egypt include Aldar Properties, Tabreed and the Al-Futtaim Group.

Last year, a consortium of Aldar and ADQ acquired a majority stake in Egypt’s Sixth of October for Development and Investment Company for 6.1bn pounds.

The National Central Cooling Company, better known as Tabreed, is also expanding in the capital Cairo with district cooling services.

Updated: June 19, 2022, 11:24 AM