Unlocking Potential
Powering Growth
Unlocking Potential
Powering Growth
April 23, 2024
B Investments is pleased to announce the successful completion of its mandatory tender offer (“MTO”) for the acquisition of a majority stake of c. 70% of Orascom Financial Holding (“OFH”).
This transaction marks an important milestone for B Investments, reaffirming its position as a leading private equity investment company in Egypt.
“The successful completion of this transaction is a testament to B Investments’ strategic vision and commitment to continue executing landmark transactions and deliver value to its shareholders. The combined strength of B Investments and OFH position the consolidated entity as a formidable player in the overall Egyptian market.” said Mr. Hazem Barakat, Co- Founder & Chairman of B Investments.
“We are delighted to announce the successful completion of this notable transaction with OFH. We look forward to strengthening B Investments’ position in the Egyptian market by integrating the valuable assets of OFH into our existing portfolio to further drive growth of the entire entity.” added Mr. Mostafa El-Anwar, Chief Executive Officer of BPE Partners.
Cairo, 14th January 2024 – With a remarkable growing performance and record-breaking sales, Madinet Masr (Stock Code MASR.CA), one of Egypt’s leading urban community developers, concludes 2023 with many successful achievements which further strengthened its established position among the top leading real estate developers in Egypt. Madinet Masr and its CEO are recognized by several prestigious international and local institutions which is a testament of their leading and pioneering role and strong performance in the Egyptian real estate market.
One of the key drivers to this recognition is the company’s extensive expertise, vast growth and solid financial results in 2023, witnessing record- breaking sales in 2023.
Due to the diligent efforts of a team work under the leadership of Eng. Abdallah Sallam, President and CEO of Madinet Masr as well as the most innovative offerings and solutions introduced throughout the year, Madinet Masr was listed by Forbes Middle East Magazine as one of Egypt’s Top 50 Listed Companies in 2023, based on the financial information and data of companies listed on the EGX for market value, sales, total assets, and net profits. The company was also recognized as “Best Performing Real Estate Company in Egypt 2023” by Global Business Magazine, “Best Performing Real Estate Company 2023” from World Business Outlook, and “Best Investor Relations in Real Estate for Egypt 2023” by The Global Economics Awards. Additionally, the company was recognized as “Fastest Growing Real Estate Company 2023” from International Business Magazine along with other awards from Brands and Business Magazine and other recongitions from local publications including Daily News Egypt and Amwal Al Ghad magazine “Top 100 Companies” award.
Stemming from its pioneering role in providing innovative solutions to address its diversified customers’ needs as well as overcoming the obstacles of investment and ownership of real estate, Madinet Masr launched through its innovative arm, Madinet Masr Innovation Labs, its first digital platform “Touba” to revolutionize the concept of purchasing and investing in the Egyptian real estate market through various flexible payment plans to cater to its customers’ needs and aspirations.
In terms of innovation, Madinet Masr heavily invested in youth ideas to highlight their creativity which qualified the company to be acknowledged as the “Most Innovative Urban Developer in Egypt in 2023” by the Global Brand Magazine, in addition to the “Most Innovative Real Estate Company in Egypt for 2023” from World Economic Magazine.
In the realm of leadership, Eng. Abdallah Sallam was recognized as the “Real Estate CEO of the Year 2023” by World Business Outlook, and “Best Emerging CEO in Real Estate Industry 2023” by The Global Economics Magazine.
Eng. Abdallah Sallam, Madinet Masr’s President and CEO, said, “We take pride for being acknowledged by these institutions, which reflect the tireless efforts of our team to achieve outstanding results. These awards demonstrate Madinet Masr’s leadership in the Egyptian real estate market and inspire us to continue our growth strategy locally and regionally, capitalizing on our long and successful track record of over 64 years in the real estate sector.”
The nomination and award selection process involved a high-level judging panel of experts across various sectors and fields, including real estate. The criteria for selection took into consideration several factors, primarily innovation in the relevant sector, workforce and leadership skills, market value, strategic plans, potential global growth opportunities, and achievements, in addition to their effective implementation of sustainability and governance strategies.
Egypt is on a long-term mission to attract an ever-growing volume of foreign investment into projects that range from solar-powered desalination plants and the digitalization of its education system to the electrification of its transport infrastructure. In the process it is enjoying the continent’s second largest foreign direct investment (FDI) inflows, a success story due in part to the professionalism and financial acumen of private equity firms like B Investments.
Established in 2006, B Investments is held in high regard for its ability to create value for investors and portfolio companies that operate across an array of sectors, including healthcare, real estate, non-banking financial services, renewable energy, manufacturing and the food and beverage industries.
“One of our great strengths is that we have been able to adapt very, very quickly to changing circumstances,” says B Investments chairman and cofounder Hazem Barakat. “This is particularly useful when you are operating in a developing country which has experienced its ups and downs.”
Another of B Investment’s core strengths is the quality of its staff, who have successfully leveraged over 300 years of combined financial and operational experience to identify some of the country’s most promising investments and to maximize shareholder value.
Listed on the Egyptian Exchange since 2018, B Investments plays an increasingly important role in the development of Egypt as a whole. In May, for instance, B Investments entered into a partnership to provide the country’s pharmaceutical sector with a dependable one-stop shop for all its logistics, administrative, distribution and trade requirements. It is also committed to sustainable growth and has been instrumental in securing funding for several of Egypt’s growing arsenal of solar power installations.
Barakat is now looking to roll out the business model across Africa and the Middle East, while remaining supremely confident about his company’s domestic growth prospects. “Egypt is a big country with a growing economy,” he says, “and with the government’s imminent focus on encouraging FDI, there is a good chance it will become an international manufacturing hub.” With B investments on hand to lend support every step of the way.
The Sovereign Fund of Egypt (“TSFE”) through its healthcare and pharmaceutical industries Subfund (“TSFE Healthcare & Pharma Subfund”) and B Investments Holding S.A.E. (“B Investments”), BPE Partners’ flagship investment vehicle, are pleased to announce the signing of two agreements to invest over EGP 2 billion in specialized healthcare, and pharmaceuticals distribution and trade services in Egypt.
The first agreement stipulates that TSFE commits to invest EGP 100 million in B Healthcare Investments S.A.E. (“BHI”). BHI was established by B Investments as its designated investment vehicle to invest in the Egyptian specialized healthcare sector with an initial focus on fertility, mother-and-child, and related services businesses. Currently, BHI owns 51% of the Egyptian IVF Center, the pioneer of in-vitro fertilization (“IVF”) and one of the leading fertility centers in Egypt and the MENA region. BHI is targeting to raise up to EGP 1 billion of which B Investments and TSFE have committed to invest EGP 200 and EGP 100 million, respectively, with the rest to be offered to local and regional private sector investors.
Through the second agreement, B Investments will invest in TSFE Healthcare & Pharma Subfund’s established investment platform dedicated to investing in pharmaceuticals distribution and trade services. The platform aims at enhancing efficiencies and injecting capital to support infrastructure upgrades required to institutionalize the sector. The platform will be partnering with local champions in the market to accelerate their growth into under-served cities in Egypt and across the region. It will also aim at leveraging the latest technological solutions to provide a wide range of digital offerings that will lead to cost efficiencies, ensure market stability, and improve customer experience. A total of EGP 1.2 billion will be deployed in the first phase with aspirations to grow even further as more investment opportunities arise.
“TSFE prioritizes the development of the healthcare sector as a prerequisite to achieving sustainable and inclusive economic growth, in line with Egypt’s Vision 2030 goals, as well as the Sustainable Development Goals (SDGs)” said H.E. Dr. Hala H. ElSaid, Egypt’s Minister of Planning and Economic Development and Chairperson of TSFE. “These two investments contribute to providing Egyptian citizens with improved services and are a step forward towards institutionalizing the sector. In addition, TSFE’s investment model is also realized whereby its mandate of partnering with private investors and developing key strategic sectors while achieving sustainable financial returns for future generations, is fulfilled”.
H.E. Dr. Khaled Abdel Ghaffar, Minister of Health and Population, affirmed that the political leadership supports collaborative and developmental efforts between the public and private sectors, stressing that the Egyptian state is committed to achieving the goals of sustainable development and Egypt’s Vision 2030, which prioritizes raising the standard of healthcare services offered to Egyptian citizens. Thus, the Ministry of Health and Population is keen to promote investment in the healthcare sector in cooperation with businesses and investors in the field, following a sophisticated vision and strategy that aim to position Egypt among the ranks of developed countries when it comes to investment in healthcare.
“The ministry adopts a strategic approach to create partnerships with both domestic and international private sector companies in the fields of healthcare and pharmaceutical industries, enabling it to gradually transition from being a medical service provider to a regulator in order to provide better health care services to patients. We highly value our relation with The Sovereign Fund of Egypt and BPE’’ H.E. added.
“We are honored to partner up with TSFE to invest in the Egyptian specialized healthcare space” stated Mr. Hazem Barakat, Co-founder and Chairman of B Investments. “We recognize the significant value that TSFE brings to BHI and are looking forward to support and grow local healthcare players. “
“This partnership marks TSFE’s first investment into the healthcare and pharmaceutical services industries. We are glad to partner with BPE Partners who possess the required investment management expertise to realize our shared vision of providing affordable, high quality healthcare services across all regions in Egypt. Together, we will capitalize on the sector’s potential for growth with a larger geographical reach and technology enablement” said Mr. Ayman Soliman, CEO of The Sovereign Fund of Egypt. “TSFE’s trade pharma platform is an integral pillar in the subfund’s strategy. Egypt’s pharmaceutical industry is currently worth over EGP 130 billion and our aim is to provide investment solutions to enhance governance, achieve cost efficiencies and ensure market stability to unlock the sector’s full potential” he added.
“We are excited to invest alongside TSFE in this strategic sector of the Egyptian economy” added Mr. Mostafa El-Anwar, CEO of BPE Partners. “We intend to leverage our collective investment management expertise to institutionalize local healthcare businesses, expand healthcare services to the wider demographic of Egypt, and implement high ESG standards to support the competitiveness of the Egyptian healthcare market.”
Both transactions are subject to customary regulatory approvals and are expected to close during the first half of 2023.
MNHD wants to open talks on merger with, or acquisition of, SODIC: The board of directors of Madinet Nasr Housing & Development (MNHD) has given its chairman the go ahead to open talks.
Read moreThe retail tranche of B Investment’s initial public offering was 84.4x oversubscribed when bookbuilding concluded at the close of yesterday’s session.
Read moreBPE Partners and MM Group for Industry and International Trade (MTI) have together acquired 60% of TBE Egypt for Payment Solutions and Services (Bee) for EGP 156 mn. The transaction was executed through Ebtikar for Financial Investment, a 50-50 joint venture between BPE Partners and MTI. Bee provides bill payment solutions through a secure network and has more than 35,000 outlets across Egypt.
Read moreBPE Partners has appointed EFG Hermes and Sigma Capital to manage it’s planned listing on the EGX this year. The company plans to list 25-30% of its shares. Zaki Hashem & Partners are legal advisors on the transaction and Grant Thornton is preparing the fair value assessment.
Read moreAcumen-BPE will begin marketing the Housing and Development Bank’s EGP 1 bn real estate fund in September once it receives the green light from the Egyptian Financial Supervisory Authority. The first EGP 500 mn phase of the fund is set to launch in 4Q2017.
Read moreIbtikar for Investment Finance, a partnership between BPE Partners and MM Group that provides SME finance and leasing, has applied for a license to launch micro-finance operations in Egypt. Ibtikar plans to begin offering factoring, leasing, and finance by the end of the year.
Read moreBPE Partners has established a joint venture with Daikin, a Japanese multinational AC manufacturing company (Daikin Egypt), an investment valued at EGP 47 mn. Daikin Egypt will distribute and provide after-sales services for ACs, heating, ventilation, and cooling energy-saving equipment.
Read more