Pharos advises on Spinneys Egypt's acquisition deal

Cairo –  Pharos Investment Banking acted as the exclusive sell-side advisor to the selling shareholders of Spinneys Egypt in the sale of a controlling stake in the grocery retailer to Investec Asset Management (IAM), according to a statement on Monday.

The supermarket chain has 13 outlets in Egypt, including two hypermarkets and 11 supermarkets.

The value of the acquisition deal wasn’t disclosed.

The deal “solidifies Pharos Investment Banking’s capabilities and growing presence in the M&A market in Egypt,” chairman and CEO of Pharos Holding for Financial Investments, Elwy Taymour, said.

“After fierce competition between foreign and local, including financial and strategic, investors, the deal has finally come to a successful conclusion,” director of investment banking at Pharos, Mohsen Abou El Nour, noted.

“This transaction highlights the attractiveness of the organised grocery retail industry in Egypt with prominent long term growth prospects,” Abou El Nour added.

On 14 July, Investec announced the acquisition of Spinneys Egypt from Dubai-based Abraaj Group in its first private equity investment in Egypt.

The ownership of Spinneys in Egypt has previously been transferred to the Commercial Bank of Dubai (CBD) as part of a settlement deal with Abraaj.

In March, Investec was reportedly conducting due diligence for acquiring the supermarket chain.

In September 2018, five private equity firms, including Ezdehar, expressed their interest to acquire Spinneys Egypt from Abraaj Group following the collapse of the Dubai-based private equity firm.