Financial services firms are high in demand, with B Investments pressing on with its 70% acquisition of Orascom Financial Holding and Al Ahly Capital Holding buying up a majority share in El Sewedy Capital’s financial leasing firm Easy Lease.

B INVESTMENTS’ BOARD APPROVES SHARE CAPITAL INCREASE AHEAD OF OFH ACQUISITION-

We’re nearing the finish line of B Investments’ OFH acquisition: Private equity firm B Investments’ board yesterday approved a decision to increase the company’s share capital ahead of its share swap agreement with Orascom Financial Holding (OFH), the company said in a disclosure(pdf). The company will issue some 58.3 mn shares at a value of EGP 5 per share — raising its capital from EGP 800 mn to some EGP 1.09 bn, according to our calculations.

B Investments is snapping up a majority stake in OFH, after owners of some 3.3 bn shares— a roughly 70% stake in the company — have responded to B Investments’ MTO for up to 90% of OFH, according to an EGX disclosure (pdf).

What’s next? B Investments will now need to complete the share swap — its board had agreed to a share swap ratio of one B Investments share to 56.76 OFH shares.

In the making since last summer: B Investments had approved a plan to submit the MTO back in June, but requested a deadline extension in September.

EASY LEASE GETS A NEW MAJORITY OWNER-

Al Ahly Capital Holding acquires 51% stake in Easy Lease: Al Ahly Capital Holding, the private equity arm of the National Bank of Egypt, has purchased 51% — or 102 mn shares — of local financial leasing services provider Easy Lease from El Sewedy Capital, according to a statement (pdf). The value of the transaction was not disclosed.

The new stakeholder structure: Al Ahly Capital Holding now holds a 51% stake in the firm, Elsewedy Holding holds a 47% stake, and the co-founder Ahmed El Kholy owns a 2% stake.

The advisors: Our friends at Grant Thornton acted as the due diligence advisor for financial and tax matters, while Adsero Ragy Soliman & Partners acted as El Sewedy Capital’s legal advisor and ALC Alieldean Weshahi & Partners was Al Ahly Capital Holding’s legal advisor. Al Ahly Pharos Investment Banking acted as sole financial advisor and broker on the transaction, while Ahly Pharos Securities Brokerage was the sole intermediary.

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