EFG Hermes plays key role in Electra's $449mln stake deal

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EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (Mena) region, has announced that its investment banking division had successfully concluded advisory to UAE’s Electra Investment Holding on the $449 million acquisition of 19.98% in Elsewedy Electric, a regional leader in the production and provision of comprehensive energy and infrastructure solutions.

EFG Hermes acted as the sole financial advisor to Electra Investment Holding in the acquisition.

Electra had submitted its Voluntary Tender Offer to acquire up to 24.5% of Elsewedy Electric at a purchase price of $1.05 per share, said EFG Hermes in its statement.

This move successfully resulted in Electra securing 19.98% of Elsewedy Electric’s total outstanding share, marking another landmark acquisition that EFG Hermes has advised on so far during 2024, it added.

Commenting on the acquisition, Maged El Ayouti, Co-Head of Investment Banking of EFG Hermes, said: "We are proud to have advised Electra on its landmark acquisition of Elsewedy Electric, which marks as one of the largest FDI M&A transactions in Egypt and broader region this year."

"It is also a continuation of a series of significant cross-border transactions we have advised on in the last nine months with an aggregate M&A deal value during this period that exceeds $2.4 billion, including the landmark acquisition by ICON Holding (TMG’s hospitality subsidiary) of the seven historical hotels in Egypt accompanied with the capital raising in ICON for ADQ and ADNEC, as well as the acquisition of 30% in Eastern Company by Global Investment Holding," noted El Ayouti.

"This deal together with our current pipeline of transactions reflects investor interest for opportunistically pursuing acquisitions of market leading corporates. The deal also highlights our trusted capabilities to spearhead and flawlessly deliver this major transaction, as well as our commitment to continue bolstering the growth of the regional economy," he added.

Established in 1997, Elsewedy Electric is involved in the production of electric cables, poles, towers, transformers, electrical breakers, and connection accessories, as well as the design, construction, operation, and maintenance of power plants.

The company's global reach, comprising more than 70 nations, together with its augmented production in foreign facilities like those in Saudi Arabia and Algeria, have served to alleviate the effects of market and economic conditions.