AIH chairman wants a piece of two AIH subsidiaries: The family office of the head of Arabia Investments Holding has submitted a binding offer to acquire significant minority stakes in two of the EGX-listed company’s subsidiaries, according to an AIH disclosure (pdf) to the bourse on Wednesday. JAF Investment (LinkedIn), which is headed up by AIH chairman Gamal Abdelfatah Othman, has offered to purchase a 30% stake in SME finance firm UE Finance for EGP 147 mn and a 30% stake in Rawaj Consumer Finance for EGP 30 mn in two all-cash transactions, according to the disclosure.

The AIH connection: JAF Investment Othman’s family office. Five members of the family are listed on the board, including AIH board member Khaled Gamal Abdelfatah Othman and Ali Abdelfatah Othman, who serves as its deputy CEO. Ezz Kamel Ebrahim Ezz, who also sits on the board at AIH, is JAF’s CEO. “Given that our company is considered a related part of AIH, we hereby confirm our full commitment in observing all the principles of conflict of interest,” JAF’s offer reads.

JAF’s main focus is private equity: The company says it has “more than 30 years of exposure in the contracting and real estate sector in Egypt and the UAE.” Its main focus is private equity investment in several sectors including real estate, non-banking financial services, contracting, healthcare, education, automotive services and trading, and logistics and warehousing.

Market reacts: AIH shares rose 5.9% to close at EGP 0.36 on Wednesday.

What’s next: AIH said its board is considering the offer, which would remain contingent on regulatory approval if the board gives it the green light.

Tags: