Chimera buys majority stake in Egypt-listed Beltone to expand portfolio

Abu Dhabi investment company is seeking to boost its presence in the Arab world's most populous country

Chimera, part of Abu Dhabi’s Royal Group, is active in a number of sectors. including property, construction, food and beverages, hospitality, aviation and health care. Shutterstock

Abu Dhabi-based investment company Chimera acquired a majority stake in Egypt-listed financial services provider Beltone as it continues to expand its portfolio across the Middle East and North Africa to boost growth.

Chimera bought a 55.9 per cent stake in Beltone at a price of 1.485 Egyptian pounds ($0.077) per share, it said on Tuesday.

The Abu Dhabi company first announced plans to acquire Beltone in June as it aims to expand its operations in the Arab world's most populous country.

“The conclusion of the Beltone acquisition is directly in line with our long-term expansion strategy,” Syed Shueb, chairman of Chimera, said.

“We will, over the coming period, look to unlock value and implement an all-encompassing transformation plan, aimed at restoring growth and profitability to Beltone.”

Established in 2006, Beltone offers brokerage, investment banking, asset management, equity research and a wide range of non-banking financial institutions services, including leasing and consumer finance, in Egypt and across the Mena region.

In the first quarter of this year, it reported 3.8 million pounds in net profit, according to the financial statement on the Egyptian Exchange.

Chimera, part of Abu Dhabi’s Royal Group, 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.

Last year, it said it is investing $100m in Egyptian developer Gemini Global Development to acquire a minority equity in the company to support its expansion in Egypt.

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

The latest deal is aimed at helping Beltone to expand its presence.

“I am confident that we will restructure and grow this institution to become a major market leader in the region and a solid platform for attracting international investments into our host markets,” Dalia Khorshid, who was recently appointed as Beltone's new chief executive, said.

"Our target is to implement a high-performance culture focusing on value creation to our clients, our people and our shareholders to ensure a successful and sustainable future.”

Matouk Bassiouny and Hennawy acted as legal counsel to Chimera on the transaction, according to the statement.

Other UAE-based companies, such as Aldar, Tabreed and Agthia, are also expanding their operations in Egypt as ties between the two countries strengthen.

Last month, UAE’s AD Ports also announced plans to acquire a 70 per cent stake in Egypt's International Associated Cargo Carrier for Dh514m.

UAE, Egypt, Jordan and Bahrain signed the Industrial Partnership for Sustainable Economic Development this year to boost sustainable industrial growth and explore opportunities for joint investment in priority sectors.

The industrial partnership is expected to boost the gross domestic product of the member countries by $809 billion.