GB Auto commissioned Alpha Capital Financial Advisors as an independent financial advisor to determine the fair value of the shares of its Dutch subsidiary, MNT Halan.
The company signed a sale agreement with the UAE investment company Chimera for a 21.7% stake in Halan, including a 7.5% stake in an indirect contribution to GB Auto, with a value ranging between $60- 71.3m.
Informed sources told Daily News Egypt that it had obtained the initial approval from the Financial Regulatory Authority to complete the deal, noting that the transfer of shares would take place during the first week of next November.
The sources added that determining the final value of the deal depends on the exchange rate when the shares are transferred, while the final valuation of 100% of the company will range between $800m to $1bn.
The company explained that the determination of the fair value, in light of the signing of a final agreement to sell a stake in MNT Investment BV owned by it indirectly, provided that the approvals required to carry out the sale are met.
The company indicated that the procedures for selling GB Auto part of its indirect shareholding in the Dutch company MNT Investments BV, representing 7.5%, with a total value of $60m, will be started.
It explained that it was agreed that the amount would be increased to $71.3m in the event that specific conditions were met, so that the percentage of GB Auto’s indirect ownership in the company after the implementation of the sale deal would reach 49.5%.
The company is currently working on obtaining the required approvals in accordance with the relevant laws to implement the transaction, and after fulfilling the required approvals, the transaction will be completed.
MNT Investments BV indirectly owns controlling stakes in the capital of Mashroo3i and Tashel Microfinance companies, in addition to contributions in other companies in the financial technology fields.
The consolidated net profit of GB Auto increased by 35% during the first half of 2022, to reach EGP 1.09bn, compared to a net profit of EGP 807.3m in the corresponding half of 2021.
