EFG Hermes will serve as the financial advisor to the MM Group for Industry and International Trade (MTI) listing of its e-payment subsidiary on the Egyptian Exchange (EGX).
Sources close to the deal have told Daily News Egypt that MTI is establishing a new e-payment holding company by the end of the year, under which the e-payment platforms Masary and Bee will operate. Hermes will begin the procedures of the offering in the first quarter (Q1) of 2021.
This comes on the back of MTI’s completion of merging operations of Masary and Bee, according to the company’s director of investor relations, Ashraf El-Ghannam.
The merging includes operating and back office systems of Masary and Bee, however, both will maintain separate brands and expansion plans, but at reduced costs.
MTI has reported EGP 2.11bn in revenues during Q2 of 2020, compared to the EGP 2.23bn in Q1 of 2020, and EGP 2.45bn in Q2 of 2019. This reflects a decline of 13.8% year-on-year (y-o-y) and a decline of 5.5% quarter-on-quarter (q-o-q).
The annual decline in sales can be attributed to the shutdowns due to the novel coronavirus (COVID-19), given that Q2 of 2020 was the peak of the nationwide night-time curfew, lockdowns, and movement restrictions. Sales were also affected by the holy month of Ramadan and Eid Al-Fitr holiday, which are usually slow periods for trade.