Beltone Financial Holding receives approval for acquisition of Cash for Microfinance Company

CAIRO - 7 August 2023: Beltone Financial Holding announced Monday that it has obtained the approval of the Egyptian Financial Regulatory Authority (FRA) to proceed with the due diligence process for the acquisition of Cash for Microfinance, an extremely small-scale financing company.

 

The company clarified in a filing to the Egyptian Exchange (EGX) that the approval was granted in accordance with the decision of the FRA's Board of Directors No. 53 of 2018 and its amendments, as well as the decision of the specialized committee of the FRA dated August 6 of this year.

 

This comes after Beltone Financial Holding announced in a previous statement the signing of a memorandum of understanding (MoU) with the aim of acquiring an Egyptian company licensed by the FRA to engage in microfinance activities. However, it did not disclose the name of this company.

 

At that time, the company stated that this MoU would allow it to carry out the due diligence process after obtaining the necessary regulatory approvals to conduct this non-objection study, in preparation for completing the acquisition process, either directly through Beltone Financial Holding or one of its subsidiaries.

 

According to the stock exchange disclosure, Beltone mentioned that shareholders should take into account that the completion of the deal is subject to the results of the due diligence process and all necessary approvals.

 

Beltone Financial operates in the field of non-banking financial services and the Emirati company Chimera acquired a majority stake of 56 percent in Beltone after purchasing it from Orascom Financial Holding in August 2022. The company increased its capital by LE 10 billion in July.