TIDMEFGD
RNS Number : 7399X
EFG-Hermes Holdings SAE
22 December 2019
EFG Hermes to Expand into the Insurance Sector
Cairo, December 22(nd) , 2019: EFG Hermes Holding announces that
its wholly owned subsidiary, EFG Finance Holding, along with GB
Capital, a wholly owned subsidiary of GB Auto, entered into a
definitive sale and purchase agreement (SPA) to acquire 75% stake
in insurance player "Tokio Marine Egypt Family Takaful", a wholly
owned subsidiary of Japan-based "Tokio Marine Group" in a deal
worth EGP84.75 million. Under this agreement, which is subject to
regulatory approvals, EFG Hermes Finance and GB Capital will each
own 37.5% of the company.
About Tokyo Marine Egypt Family Takaful
Established in 2008 Tokio Marine Egypt Family Takaful has
provided individual and corporate clients with a broad suite of
Sharia-compliant life insurance products. Tokio Marine Egypt Family
Takaful is a fully owned subsidiary of Tokio Marine Group, Japan's
premier insurance company and a world-renowned leader in insurance
and reinsurance and the largest general insurer in Japan
Please find below the press release issued by the Group
For further information:
Investor Relations Department
Email: investor-relations@efg-hermes.com
Tel: +20 (0)2 35356710
Fax: +20 (0)2 3535 7017
Head of Investor Relations - Hanzada Nessim
Email: hnessim@efg-hermes.com
Tel: +20 (0)2 35356502
Fax: +20(0)2 3535 7017
www.efg-hermes.com
Press Release
EFG Hermes, GB Auto to acquire majority stake in life insurance
player Tokio Marine Egypt Family Takaful
The partnership will capitalize on the growing demand for
insurance offerings in Egypt and the synergies inherent in the
business models of both the NBFI heavyweights
22 December 2019
(Cairo, Egypt) - EFG Hermes (through its NBFI arm EFG Hermes
Finance Holding) and GB Auto (through its NBFI arm GB Capital)
announced today their entry into a definitive sale and purchase
agreement (SPA) to acquire a 75% stake in life insurance player
Tokio Marine Egypt Family Takaful in a deal worth EGP 84.75
million. Under the agreement, which is subject to regulatory
approval, EFG Hermes Finance and GB Capital will each own 37.5% of
the company.
Tokio Marine Egypt Family Takaful is owned by Japan-based Tokio
Marine Group, a world-renowned leader in insurance and reinsurance
and the largest general insurer in Japan. The company offers
individual and corporate clients a variety of solutions covering
health and life insurance needs.
Dr. Raouf Ghabbour, Chairman and CEO of GB Auto (AUTO on the
EGX) commented: "We know the Egyptian life insurance industry is
primed for growth, with significant untapped potential for rapid
and profitable expansion. Given these promising conditions, we have
decided to grow our business in this lucrative space while
enhancing the sophistication and size of the market to the benefit
of all players. We are honored to partner with EFG Hermes and Tokio
Marine Group and are confident that our new relationship represents
the natural progression of our already established, expansive and
fast-growing NBFI portfolio of offerings in the leasing, consumer
finance, factoring, micro finance, mortgage finance, securitization
and fleet-leasing arenas."
Commenting on the agreement, Karim Awad, Group CEO of EFG Hermes
Holding (HRHO on the EGX) said, "The Egyptian insurance market is
largely under-penetrated compared to its potential, with premiums
as a percentage to GDP still in the single digits. Thanks to an
improving economic outlook, capital regulations focused on
insurance penetration, and wider financial inclusion, Egypt's
insurance industry is poised for substantial growth in line with
the kind of growth anticipated for other emerging markets. As such,
this partnership not only comes at the perfect time, but falls
perfectly in line with our strategy to continue expanding our NBFI
offering. Our NBFI footprint today encompasses leasing,
microfinance, fintech-enabled consumer finance, mortgage finance,
factoring and securitization. We can think of no better partner
with whom to move forward on this than GB Capital and Tokio Marine
Group."
The partnership will see EFG Hermes Finance and GB Auto work
together with Tokio Marine Group to develop and enhance Tokio
Marine Egypt Family Takaful's life insurance offering. It will add
innovative products to establish a comprehensive suite of life and
medical insurance solutions geared toward owners of various asset
classes - be they automotive owners, home-owners or otherwise - to
capitalize on cross selling opportunities within both EFG Hermes
Finance and GB Auto's NBFI portfolios.
EFG Hermes Finance and GB Auto bring to the table unique
capabilities in the NBFI market, capitalizing on their market
strength and extensive experience both individually and as partners
in the mortgage finance space. In April, EFG Hermes Finance, GB
Auto, and TMG Group entered into an agreement to create Bedaya, a
mortgage finance joint venture serving Egypt's large, growing
population of homebuyers.
-Ends-
About EFG Hermes Holding
With a current footprint spanning thirteen countries across four
continents, EFG Hermes started in Egypt and has grown over 30 years
of success to become a leading financial services corporation with
access to emerging and frontier markets. Drawing on our proven
track-record and a team of more than 4,400 talented employees, we
provide a wide spectrum of financial services that include
investment banking, asset management, securities brokerage,
research and private equity to the entire MENA region. In 2015, EFG
Hermes launched the NBFI Platform, EFG Hermes Finance, which will
overlook activities in the non-banking finance field through EFG
Hermes Leasing, Tanmeyah Microfinance, valU for instalment sale
services, EFG Hermes Factoring and Bedaya for Mortgage Services.
This falls in line with the Firm's strategy to focus on two main
pillars: product diversification and geographic expansion into new
promising markets, which has seen the firm establish a physical
presence in Pakistan, Kenya, Bangladesh, Nigeria, the United
Kingdom, the United States and Vietnam.
For further information about EFG Hermes, please visit
www.efghermes.com and stay connected with us.
About GB Auto S.A.E. is a leading automotive company in the
Middle East and non-bank financial services provider in Egypt.
Across six primary lines of business - Passenger Cars, Motorcycles
& Three-Wheelers, Commercial Vehicles & Construction
Equipment, Tires, After-Sales, and Iraqi operations - the company's
main business activities include assembly, manufacturing, sales and
distribution, financing and after-sales services. GB Auto's
portfolio of brands includes Hyundai, Mazda, Geely, Chery, Bajaj,
Marcopolo, Iveco, Volvo Truck & Bus, Volvo Construction
Equipment, Mitsubishi Fuso, YTO, Karry, SDLG, Sinotruk, Aksa,
Lassa, Yokohama, Pirelli, Westlake, Double Coin, Doublestar, Verde,
Techking, and Gazpromneft GB Auto has operations in Egypt and Iraq.
The Company's NBFS' segment branded GB Capital offers leasing,
consumer finance, microfinance and fleet quasi-operational leasing
under the following brands: GB Lease, Mashroey, Drive, Tasaheel and
Haram. The company is headquartered in Giza, Greater Cairo Area,
Egypt.
About Tokio Marine Egypt Family Takaful
Established in 2008 Tokio Marine Egypt Family Takaful has
provided individual and corporate clients with a broad suite of
Sharia-compliant life insurance products. Tokio Marine Egypt Family
Takaful is a fully owned subsidiary of Tokio Marine Group, Japan's
premier insurance company.
Note on Forward-Looking Statements
In this press release, EFG Hermes Holding and GB Auto (jointly
and separately, "the Partners") may make forward looking
statements, including, for example, statements about management's
expectations, strategic objectives, growth opportunities and
business prospects. These forward-looking statements are not
historical facts but instead represent only EFG Hermes' belief
regarding future events, many of which, by their nature are
inherently uncertain and are beyond management's control and
include among others, financial market volatility; actions and
initiatives taken by current and potential competitors; general
economic conditions and the effect of current, pending and future
legislation, regulations and regulatory actions. Accordingly, the
readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on
which they are made.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
STRFEIFSEFUSEIE
(END) Dow Jones Newswires
December 23, 2019 02:00 ET (07:00 GMT)
EFG (LSE:EFGD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
EFG (LSE:EFGD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024