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EGX requests Beltone to disclose uses of pending OTMT and Act Financial loan - Daily News Egypt

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EGX requests Beltone to disclose uses of pending OTMT and Act Financial loan

The loan will be used in CI Capital acquisition in preparation for the merging: Sources

The Egyptian Exchange (EGX) requested further disclosure from Beltone regarding the use of the EGP 1bn to be loaned from Orascom Telecom Media and Technology (OTMT) and Act Financial Services pending further approval, according to anonymous sources.

The EGP 1bn in loans will finance Beltone’s potential purchase of CI Capital, a deal that was initially announced in mid-December. Upon approval from the Egyptian Finanacial Supervisory Authority (EFSA) and the EGX, the deal will be finalised.

Beltone has responded that it cannot reveal further information about the loan since it will be discussed in detail during the General Assembly meeting planned to be held on 31 January.

Sources pointed out that Beltone will use the loan in the acquisition process of CI Capital Investment Banking where OTMT, the main shareholder of Beltone, aims to merge Beltone and CI Capital. The acquisition must occur through Beltone.

The sources ruled out the possibility of holding discussions regarding the duration of the loan or the interest rate before holding the General Assembly meeting, in which the possibility of obtaining permits for the loan will be discussed.

Alaa El-Sabaa will give up his position as chairman of Beltone on 31 January and Sameh Al Torgoman, who is currently the chairman of Act Financial, will be made chairman of Beltone, according to the sources.

OTMT and Act Financial services managed to acquire 97.39% of Beltone’s shares for a value of EGP 634m in a new attempt by Naguib Sawiris to invest in the financial services sector. Beltone, under the ownership of OTMT and Act Finacial, subsequently announced their intentions to acquire CI Capital in a deal expected to range between EGP 900m-950m.

Beltone’s financial lists for the period from 1 January to 19 November 2015—before the deal was made—showed a decline in profits, dropping to EGP 5.143m, taking into consideration minority rights compared to net profits of EGP 15.3m by the end of FY 2014.

Topics: Beltone EGX OTMT

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