B Investments’ net income grew eightfold year-on-year to EGP 846 mn in 2022, according to its earnings release (pdf). The private equity firm’s revenues jumped more than ninefold to EGP 1.5 bn, driven by an EGP 1.4 bn capital gain from its Giza Systems exit, the release says.

Two big exits in four months bring capital gains: The EGX-listed firm divested its 44.7% in Giza Systems in October at a company valuation of USD 128 mn, according to head of investor relations Omar El Labban. The exit drive has continued in 2023: The company sold its 6.4% stake in Total EnergiesEgypt for USD 27.6 mn in February. The transaction yielded an additional USD 2.2 mn for B Investments when Adnoc acquired a 50% stake in Total Energies in February, El Labban told us, adding that the combined net proceeds of the exits have amounted to c. EGP 1.6 bn. More than half of the proceeds will be allocated to cash and stock dividends, and the remainder to fresh investments, he said.

What they said: “2022 was an exceptional year given our exit from Giza Systems,” El Labban said. “We believe that 2023 will be another excellent year, given that the TotalEnergies Egypt exit will buoy 1Q 2023 earnings.”

Looking ahead: “Our future plan is making more investments, building our portfolio and creating value for our existing portfolio companies,” El Labban said, explaining that the firm is targeting companies in consumer-driven sectors — such as healthcare, pharma, education, and FMCGs — as well as exporters. The company’s board in March signed off on investing up to EGP 500 mn in the Sovereign Fund of Egypt’s (SFE) healthcare and pharma sub-fund. Company chairman Hazem Barakat said earlier this year that B Investments is working on acquisitions in the pharma and food sectors, and will invest EGP 2 bn.

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