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Edge Holding for Investments signed an agreement to acquire a 30% stake in Basata Microfinance, a subsidiary of Basata Financial Holding (BFH), through a capital increase, according to a joint statement (pdf). Edge will take on management duties to support Basata’s nationwide expansion. There’s no publicly available information about the size of the transaction and the number of new shares that will be issued.
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The transaction aims to broaden Basata’s product offerings, integrate digital financial services, and enhance governance and operations as part of efforts to ramp up financial inclusion for SMEs and underserved individuals, the statement reads. Basata also plans to create synergies with sister company Basata Pay to integrate payment solutions and develop cross-platform financial products.
About the companies: BFH invests in Egypt’s non-banking financial services sector, founded in 2017 as a joint venture between EGX-listed companies B Investments and MM Group. It holds a 70% stake in Basata Microfinance. As for Edge Holding for Investments, it has launched ventures in consumer finance, leasing, and real estate solutions. The firm plans to raise over EGP 300 mn to expand into SME, consumer, and mortgage finance.
IN OTHER M&A NEWS-
Tunisian private equity firm AfricInvest made “one of Egypt’s largest foreign direct investments in the education sector to date” in the British University in Egypt, according to a statement (pdf) from financial advisor Zilla Capital. The transaction was executed through a capital increase, although its value and stake acquired were not disclosed, it was highlighted that the Khamis family will remain majority shareholders.
The funds will help the university “strengthen its position in the higher education sector in Egypt and regionally,” which will be done by expanding existing facilities and building new ones. The university will also broaden its curriculum and improve governance.
ADVISORS- Alongside Zilla Capital as transaction advisor, Baker McKenzie provided counsel to the university, and Matouk Bassiouny & Hennawy provided counsel to AfricInvest.
