Egypt’s EFG Hermes has concluded advisory on the demerger of Al Arafa for Investment and Consultancies into Concrete Fashion Group for Commercial and Industrial Investments (Concrete) and Gtex for Commercial and Industrial Investments (Gtex).
The transaction is the latest in a series of strategic transactions EFG Hermes’ investment banking division has completed. Most recently the firm concluded advisory on Parkin’s initial public offering (IPO) on the Dubai Financial Market (DFM), Cenomi Retail’s sale of a portfolio of fashion brands to Abdullah Al-Othaim Fashion in Saudi Arabia in addition to Kazyon’s acquisition of Dukan in the kingdom.
The firm also advised Talaat Moustafa Group Holding (TMG) on the strategic investment via a capital increase by Abu Dhabi’s ADQ and ADNEC Group for 40.5% in TMG Holding’s hospitality arm, ICON Group (ICON), to acquire 51% of the portfolio of seven historical hotels for a total consideration of $800 million.
Last year, the firm closed a total of 28 transactions valued at $7.6 billion between equity capital markets, debt capital markets and merger and acquisition deals. EFG Hermes concluded the IPOs of ADES Holding Company and Lumi Rental Company on the Saudi Exchange in 2023.
The investment bank also concluded the landmark IPOs for ADNOC L&S and ADNOC Gas on the Abu Dhabi Securities Exchange.
Furthermore, EFG Hermes facilitated the listing of OQ Gas Networks and Abraj Energy Services on the Muscat Stock Exchange. It also facilitated the listing of Al Ansari Financial Services on the DFM.
The demerger is aimed at carving out the essence of style and industry prowess, housed within Concrete, from the array of strategic investments held by Gtex.
“We are proud to have played a key role in guiding the strategic demerger of Al Arafa for Investment and Consultancies. This transformative decision sets the stage for Concrete and Gtex to focus on their core businesses, igniting operational excellence and unlocking unparalleled shareholder value,” said Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes.
The pivotal decision was fuelled by a collective vision to sharpen management focus on every facet of the business, empowering both entities to soar to new heights of performance.
