{"id":546373,"date":"2022-05-15T04:00:24","date_gmt":"2022-05-15T04:00:24","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/"},"modified":"2022-05-15T04:00:24","modified_gmt":"2022-05-15T04:00:24","slug":"amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/","title":{"rendered":"Amazon invests in EFG Hermes; could swap for >4% stake in valU at current USD 235 mn valuation"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a> <strong>Amazon snaps up EFG GDRs, with option to swap for valU shares:<\/strong> Amazon has agreed to purchase USD 10 mn worth of EFG Hermes\u2019 London-listed global depositary receipts (GDRs) with an option to convert the investment into an equity stake in EFG\u2019s consumer finance arm valU, the bank said in <a href=\"https:\/\/ent.news\/2022\/5\/NEWS-ANNOUNCEMENT_-EFG-Hermes_-valU-and-Amazon-Announcement.pdf\">a statement (pdf)<\/a> Thursday. The transaction represents about 1% of EFG\u2019s GDRs, which have a current market cap of USD 976 mn.<\/p>\n<p><strong>The transaction values pioneering BNPL player valU at USD 235 mn: <\/strong>The GDRs would translate into a 4.255% stake in valU\u2019s issued share capital, based on valU\u2019s current post-money USD 235 mn valuation. Amazon can decide to swap its GDRs for the valU stake if a third-party investor invests in valU, or if valU is sold, IPOed, or otherwise listed, the statement says.<\/p>\n<p><strong>valU will now offer its financing<\/strong><strong> services to customers of Amazon Egypt<\/strong> under a separate agreement struck by the two companies, the statement says. valU will make some of its consumer financing products available to eligible customers on amazon.eg, providing these customers the option to split the total cost of purchases into multiple payments by using valU,\u201d the statement reads.<\/p>\n<p><strong>This is an endorsement for EFG<\/strong>, which <a href=\"https:\/\/efghermes.com\/media\/EFG-NR-ValU-Launch-E-v3.pdf\">launched valU in late 2017 (pdf)<\/a> as part of Group CEO Karim Awad\u2019s drive to transform the firm from a leading investment bank into a financial services powerhouse operating across frontier emerging markets. A pioneer in a BNPL sector that at the time didn\u2019t really have a name, valU has since become ubiquitous in Egypt and is <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/89804535-68b6-4fd3-a855-f31884f8b0dd\">eyeing regional expansion<\/a>, with Saudi Arabia likely to be its first new market. We spoke with Awad about valU and the firm\u2019s transformation in Making It, our seasonal podcast about how to build a great business here in Egypt (<a href=\"https:\/\/enterprise.press\/podcasts\/team-player-karim-awad-grown-efg-hermes-regional-giant-global-player\/\">listen, runtime: 34:07<\/a>).<\/p>\n<p><strong>The investment is also a boost for Egypt<\/strong>, signaling that the world\u2019s highest-profile retailer sees lots of room to grow in the Arab world\u2019s largest consumer market.<\/p>\n<p><strong>ADVISORS-<\/strong> Sharkawy Law Firm advised Amazon on the transaction, according to an emailed statement.<\/p>\n<p><em><strong>CORRECTION: <\/strong>This story was corrected at 8:02am on Sunday, 15 May 2022 to reflect that Amazon's purchase represents 1% of EFG Hermes' GDRs, not 10% of market cap as we incorrectly noted in the email edition of EnterpriseAM thanks to a combination of poor writing and bad math. We apologize to our readers.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon snaps up EFG GDRs, with option to swap for valU shares: Amazon has agreed to purchase USD 10 mn worth of EFG Hermes\u2019 London-listed global depositary receipts (GDRs) with an option to convert the investment into an equity stake in EFG\u2019s consumer finance arm valU, the bank said in a statement (pdf) Thursday. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7363],"tags":[318,514,84,72,7128,595,515],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-546373","post","type-post","status-publish","format-standard","hentry","category-ma-watch","tag-amazon","tag-consumer-finance","tag-efg-hermes","tag-enterpriseam","tag-ma-watch","tag-non-banking-financial-services","tag-valu","wpautop","entry"],"acf":{"mongo_id":"38422146-4e58-4ee9-b22f-2dfec51c3f9b","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[546369],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Amazon invests in EFG Hermes; could swap for &gt;4% stake in valU at current USD 235 mn valuation - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon invests in EFG Hermes; could swap for &gt;4% stake in valU at current USD 235 mn valuation\" \/>\n<meta property=\"og:description\" content=\"Amazon snaps up EFG GDRs, with option to swap for valU shares: Amazon has agreed to purchase USD 10 mn worth of EFG Hermes\u2019 London-listed global depositary receipts (GDRs) with an option to convert the investment into an equity stake in EFG\u2019s consumer finance arm valU, the bank said in a statement (pdf) Thursday. The [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-15T04:00:24+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/amazon-invests-in-efg-hermes-could-swap-for-4-stake-in-valu-at-current-usd-235-mn-valuation\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Amazon invests in EFG Hermes; 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Brothers Fawaz Abdulaziz Alhokair, Salman Abdulaziz Alhokair, and Abdul Majeed Abdulaziz Alhokair have agreed to acquire the stake through a USD\u2026","rel":"","context":"In &quot;M&amp;A WATCH&quot;","block_context":{"text":"M&amp;A WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/ma-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/257.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547715,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/04\/valus-bnpl-services-are-now-available-on-amazon-egypt\/","url_meta":{"origin":546373,"position":2},"title":"valU\u2019s BNPL services are now available on Amazon Egypt","author":"enterpriseam admin","date":"4 July 2022","format":false,"excerpt":"EFG Hermes\u2019 subsidiary valU\u2019s buy-now-pay-later installment plans are now available to customers of Amazon Egypt, according to a joint statement (pdf) out yesterday.Amazon could soon be a valU shareholder: Amazon has the option of acquiring a 4.3% equity stake in valU after it invested USD 10 mn in EFG\u2019s London-listed\u2026","rel":"","context":"In &quot;Also on our Radar&quot;","block_context":{"text":"Also on our Radar","link":"https:\/\/enterpriseam.com\/egypt\/category\/also-on-our-radar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":667276,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/23\/valu-kicks-off-trading-on-the-egx-today-with-amazon-set-to-become-its-newest-direct-shareholder\/","url_meta":{"origin":546373,"position":3},"title":"Valu kicks off trading on the EGX today with Amazon set to become its newest direct shareholder","author":"enterpriseam admin","date":"23 June 2025","format":false,"excerpt":"Amazon will soon be able to boast a 3.95% stake in the local fintech giant","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital 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&quot;Moves&quot;","block_context":{"text":"Moves","link":"https:\/\/enterpriseam.com\/egypt\/category\/newsmakers\/moves\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":666052,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/28\/valu-shares-to-start-trading-the-last-week-of-june\/","url_meta":{"origin":546373,"position":5},"title":"Valu shares to start trading the last week of June","author":"enterpriseam admin","date":"28 May 2025","format":false,"excerpt":"EFG Holding shareholders are in line for a USD 64 mn windfall","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital 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