A look at CPME’s acquisition plans: Impact investor Catalyst Partners’ SPAC Catalyst Partners Middle East (CPME) is set to acquire majority stakes in two companies — Qardy and Catalyst Partners Holding — through share swaps, after raising its authorized capital to EGP 14 bn, up from EGP 1 bn.

CPME’s play: The two acquisitions are intended to drive growth in the target companies’ services including leasing, factoring, and SME lending, Catalyst Partners Chairman Maged Shawky told EnterpriseAM.

REMEMBER- CPME became Egypt’s first SPAC after receiving the green light from the Financial Regulatory Authority in September 2024, before listing on the EGX two months later. The SPAC is currently listed but there’s no trading activity on its shares, CPME’s IR Head Osama Rashad told us.

Acquisition #1: CPME is inching closer to closing the takeover of digital lending marketplaceQardy in a landmark SPAC transaction worth EGP 1.2 bn, according to a statement (pdf). The transaction is expected to accelerate Qadry's regional expansion and ramp up its growth plans.

A share swap agreement: Egypt’s first-ever SPAC acquisition will see CPME take full ownership of Qardy through a share swap, issuing new CPME shares in exchange for 100% of Qardy’s equity.

The details: The fair value of CPME was determined at a total of EGP 235 mn, while that of Qardy is EGP 1.2 bn, and the share swap ratio was set at 3.9 newly-issued CPME shares for every one share of Qardy.

What we know about Qardy: Founded in July 2022, Qardy is Egypt's first online lending marketplace connecting financial institutions with micro, small, and medium enterprises (MSMEs) seeking funding. Qardy partners with national and commercial banks, as well as leasing, factoring, and microfinance companies, to offer tailored financial programs supporting MSMEs' working capital and expansion needs. The company says it has facilitated over USD 19 mn in loan transactions and serves a client base of more than 7k businesses.

Acquisition #2: CPME is also gearing up to acquire a majority stake — potentially up to 100% — of Catalyst Partners Holding through a share swap valued at EGP 1.64 bn, according to a bourse disclosure (pdf). Catalyst Partners Holding shareholders will receive 32.9 newly-issued CPME shares for each share they hold.

What’s next: This year, CPME will focus on closing the two acquisitions, setting strategic plans, and injecting fresh capital, Shawky said. He said last year that the SPAC was looking to acquire six to ten companies — including two fintech and NBFS firms.

ADVISORS- CPME tapped our friends at Beltone Holding for their investment banking and brokerage services on the transaction and Matouk Bassiouny & Hennawy as counsel, Shawky told us. BDO Keys Financial Consulting will act as independent financial advisor and Grant Thornton as tax advisor, he added.

MAGRABI TO ACQUIRE KUWAIT’S KEFAN-

Egypt-born eyewear retailer Magrabi Retail Group is planning to fully acquire Kuwait-based Kefan Optics for an undisclosed sum, according to a statement (pdf). The transaction, pending regulatory approvals, will see Magrabi add 37 stores to its network, significantly expanding its presence in the Kuwaiti market, and pushing its total store count to more than 350 across the GCC and Egypt by year-end. Magrabi says it will retain the Kefan brand post-acquisition while integrating its own retail and customer service standards into the chain.

ICYMI- The transaction marks Magrabi's second major retail acquisition in less than a year, following its acquisition of Dubai’s Rivoli Vision.

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