Ebtikar Holding for Financial Investments (Ebtikar), a leading investor in Egypt’s Non-Banking Financial Services (NBFS) sector, is set to undergo a restructuring plan of its investments.
The move leads up to the preparations undertaken by the company, which is a joint venture between the MM Group for Industry and International Trade and B Investments Holding, to list on the Egyptian Exchange (EGX).
Ebtikar has transferred its shares of Tamweel Holding for Investment and Tamweel Group of Companies to Basata Financial Holding in a non-cash transaction on the EGX.
Informed sources have told Daily News Egypt that, according to the restructuring process, Ebtikar will include under its umbrella only the electronic payment (e-payment) companies Masary and Bee.
As a result, the plan to put the electronic payment arm on the EGX will be implemented through the offering of Ebtikar. This is expected in the third quarter (Q3) of 2021, for a percentage ranging between 25-30% of the company’s shares.
The sources added that Basata Financial Holding will include all non-banking financial services companies under its umbrella, namely Vitas Egypt which operates in the field of microfinance. This will also include a group of financing companies operating in the field of financial leasing, real estate financing, factoring, and consumer financing, which will be listed on the EGX in 2022.
The transfer transaction has obtained the approval of the Financial Regulatory Authority (FRA), as both Ebtikar and Basata have the exact shareholding structure and ownership. The two companies were established in accordance with the Capital Market Law No 95 of 1992, and work under its supervision based on the FRA resolution No 53 of 2018.
Ebtikar has received FRA approval to transfer its shares of Vitas Misr for Microfinance SAE to Basata in a non-cash transaction, which will be executed after obtaining EGX approval. This will come in order to finalise the process of restructuring of Ebtikar’s investments.