Beltone Acquires Majority Stake in Baobab for Regional Growth
Deal News | Dec 31, 2024 | Zawya
Beltone Capital, a subsidiary of Beltone Holding, has taken a significant step in its regional growth strategy by signing a put option agreement to acquire a majority stake in Baobab, an African financial services provider operating in seven countries. This strategic acquisition aligns with Beltone's ambitions to expand its presence in African and Emerging Markets through digital scalability, leveraging data science and AI. Beltone's Group CEO, Dalia Khorshid, emphasizes the transformational potential of this move towards innovation and sustainable growth in financial services. To finance this acquisition, Beltone's board has approved obtaining a shareholder loan, contingent on regulatory approval and the signing of a binding share purchase agreement. Additionally, Beltone has confirmed an increase in its issued capital by EGP 10.75 billion and reported strong financial results for the first nine months of 2024, with consolidated net profits at EGP 1.20 billion.
Sectors
- Financial Services
- Private Equity
- Technology
Geography
- Egypt – Beltone Capital, the acquiring company, is an Egyptian firm expanding its operations regionally.
- Africa – Baobab operates in multiple African countries, making the African continent the focal geographical area of the acquisition.
Industry
- Financial Services – The article involves Beltone Capital's acquisition of Baobab, a financial services provider, highlighting the focus on expanding financial operations in Africa.
- Private Equity – Beltone Capital's strategic acquisition of Baobab represents a typical private equity transaction, focusing on acquiring a majority stake to leverage growth strategies.
- Technology – Beltone's strategy emphasizes using data science and AI, indicating a significant technological component in its approach to financial services.
Financials
- EGP 10.75 billion – The amount by which Beltone plans to raise its issued capital.
- EGP 1.20 billion – Consolidated net profits of Beltone for the first nine months of 2024.
- EGP 650.17 million – Standalone net profits of Beltone for the first nine months of 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Beltone Capital | Acquirer | Company | Subsidiary of Beltone Holding, engaged in the acquisition of Baobab to expand regional presence in Africa. |
| Beltone Holding | Parent Company | Company | Parent company of Beltone Capital, involved in the strategic growth in African markets. |
| Baobab | Target | Company | African financial services provider operating in seven countries; target of Beltone's acquisition. |
| Dalia Khorshid | Group CEO | Person | Group CEO of Beltone, instrumental in driving the acquisition strategy focused on data-driven expansion. |