The Egyptian Post Authority intends to acquire SMART for smart card applications as part of supporting the company’s plan for digital transformation during the coming period.
SMART works in the field of e-government projects and electronic transaction processing in the Middle East and Africa, and also works in managing the catering and bread system within the Egyptian market. It currently manages 20 million cards and serves 72 million Egyptians.
Sources told Daily News Egypt (DNE) that Egypt Post seeks to enhance its presence in the digital payments sector through a guarantor, in addition to the smart solutions provided by SMART.
Furthermore, they said that the value of the acquisition deal, which is the valuation of SMART — including its contributions to Damen — will amount to 700m to EGP 1bn and that negotiations on the sale began at the start of this year.
The sources added that SMART is adopting an ambitious plan and is in the process of contracting in the coming period with the Ministry of Justice to provide card solutions for the benefit of Egyptian Real Estate Month.
SMART owns more than 90% of Damen for digital payments, while Egypt Post already owns less than 10%.
Elite Financial Advisers and Al-Ahly Pharos Securities Brokerage are acting as financial advisers to the transaction.
Damen owns more than 23 branches across Egypt and provides more than 500 electronic payment and collection services through the Daman Payments platform, such as charging and paying mobile phone and landline bills, electricity cards, donations, gas bills, charging games, and many other services.