Egypt Kuwait Holding (EKH) sold its entire 63.4% stake in Delta Ins. to Casablanca-listed Wafa Assurance in a EGP 3.2 bn (c. USD 67 mn) transaction, it said in a bourse disclosure (pdf). EKH booked an estimated USD 46 mn gain from the transaction in its standalone financials, and USD 3 mn in its consolidated results. Wafa said it plans to delist Delta from the EGX and merge Delta Life with its own life ins. arm within months of closing.

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REFRESHER- EKH’s board approved the sale last month, following Wafa Assurance’s mandatory tender offer for up to 125 mn Delta shares (100% of the company). The MTO valued Delta at up to EGP 5 bn and required a minimum acceptance of 51%.

Part of a broader portfolio rebalancing: CEO Jon Rokk told us in September that the company was doing a housekeeping exercise to exit non-core holdings and sharpen its sectoral and geographic diversification. He said the group’s next growth chapter will focus on international expansion, including new energy and industrial investments in Saudi Arabia and the UK, while maintaining strong exposure to Egypt.

ADVISORS- Our friends at EFG Hermes brokered the transaction and acted as EKH’s financial advisor, while Baker McKenzie Cairo acted as counsel for the company. Sharkawy & Sarhan and A&O Sherman Morocco provided counsel for Wafa, while Attijari Conseil served as a financial advisor and Forvis Mazars provided tax and financial advisory services out of both Morocco and Egypt.

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