Egypt-Saudi Al Hokair acquires 5% of ValU's shares
- 21 June 2022 / News / 212 / Fares RAHAHLIA
CAIRO - 20 June 2022: EFG Hermes’ subsidiary, ValU Company announced Monday that Fawaz Abdulaziz Al Hokair, Salman Abdulaziz Al Hokair and Abdul Majeed Abdulaziz Al Hokair (Al Hokair family) have reached an agreement to purchase a 4.99 percent stake in Valeo for $12.4 million, thus bringing the company’s valuation to $247.4 million.
After the completion of obtaining regulatory approvals and ensuring that the agreed terms are met, this deal will be the first investment by the Saudi Al Hokair in one of the Egyptian buy now and pay later (BNPL) platforms.
The agreement comes in the wake of ValU's announcement of entering the Saudi market through the agreement it signed last week to establish FAS Finance, a joint venture in cooperation with FAS Labs, which owns 65 percent of the company, while ValU owns the remaining 35 percent.
This strategic partnership to establish FAS Finance aims to provide advanced lifestyle solutions to shoppers in the Kingdom. ValU will launch several financing programs to facilitate payment for shoppers and maximize added value, through one easy-to-use digital platform.
The statement stressed that the Al Hokair family's acquisition of a stake in ValU is an indication of investors' confidence in the field of non-bank financing services in Egypt, which is expected to contribute to supporting opportunities to expand its operations to become a leading innovative platform and export destination for solutions and products that contribute to achieving financial inclusion.
ValU is an innovative platform based on financial services technology that is rapidly growing in the Middle East and North Africa, serving more than 574,000 customers through its mobile application in the largest consumer market in Egypt and the Arab world.
The company has a direct presence in Egypt, its main market, as a payment service in more than 5,000 points of sale to serve thousands of customers. It provides easy installment plans and programs for furniture, home appliances, electronics, fashion, auto parts, educational, health and travel services, among others.
With the entry into the Saudi market, ValU will be able to provide its services through a wide network of Al Hokair retail stores, which includes more than 1,000 stores, as well as online on (VogaCloset) and websites of independent brands, including 14 in Saudi Arabia, in addition to more service providers, retail networks and merchants to cover the entire Saudi market.
On the other hand, the Al Hokair family’s acquisition of a stake in ValU is an indication of investors’ confidence in the field of non-bank financing services in Egypt, which is expected to support opportunities to expand its operations to become a leading innovative platform and export destination for solutions and products that contribute to achieving financial inclusion, despite Inflationary pressures that cast a shadow on the Egyptian market and the markets in the region in general.
The financial group Hermes Holding succeeded last month in signing an agreement to grant a voluntary purchase right with Amazon, according to which Amazon agreed to purchase international deposit certificates worth 10 million US dollars issued in shares in the company. Provided that it has the option to replace that investment with a share in ValU in the future, equivalent to 4.255 percent of ValU's issued capital.
source: egypt today
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