• EFG Holding announced plans to list “U Consumer Finance” (Valu) on the Egyptian Exchange, restructuring ownership and distribution.
• EFG Holding will distribute 20.488% of U’s shares to shareholders, with shares to be traded post-listing.
• Valu secured a license from the FRA, aiming to enhance financial inclusion and offer a seamless digital experience.

EFG

What happened? EFG Holding S.A.E (EFG Holding Group) announced that its Board of Directors has made several decisions regarding the listing of “U Consumer Finance” LLC (“U”), know

What did the board decide? 

• To restructure U so that EFG Holding owns 20.488% of U’s capital directly.
• To convene an Ordinary General Assembly of EFG Holding to deliberate on the distribution of a portion of the distributable profits as per the financial statements for the fiscal year ending December 31, 2024. This distribution will be made to shareholders in the form of shares in U, equivalent to the above-mentioned 20.488% stake (instead of cash dividends), in preparation for U’s trading on the Egyptian Exchange following the completion of its listing procedures, registration with the Financial Regulatory Authority (FRA), and approval of the disclosure report for trading purposes.
  • The distribution will be based on the book value of U’s shares and will be made pro-rata to the ownership of all EFG Holding shareholders, with fractional shares rounded in favor of minority shareholders. Consequently, each shareholder of EFG Holding on the record date (to be announced later) will receive shares in U at book value and will have the right to trade them on the Egyptian Exchange at U’s market price after the commencement of trading. It is important to note that EFG Holding will not make any cash distributions as part of this process.
  • The right to receive shares of U Consumer Finance S.A.E. will be granted to shareholders of EFG Holding S.A.E., including the Employee Stock Option Program (ESOP) — per paragraphs 7 and 8 of Article 2 of the ESOP Statutes — on the record date, which will be disclosed later, based on detailed procedures and further information that will be announced following the decision of the Ordinary General Assembly.
• Approval has been granted for the listing of U’s shares on the Egyptian Exchange, to be followed by the completion of the necessary registration procedures with the FRA and the ratification of the disclosure report for trading purposes, paving the way for the commencement of trading based on the forthcoming disclosure report that will be submitted to the FRA for ratification.

Furthermore, after the restructuring, distribution, and trading procedures, EFG Holding will retain at least a 67% indirect stake in U through its subsidiaries.

Walid Hassouna, CEO of Valu, said, “Today marks the start of a new and impactful chapter for Valu, backed by EFG Holding and the strength of our ecosystem. Our vision is to create a future where financial inclusion is a universal reality, accessible to everyone—not just a privileged few.”

Who are they? EFG Holding is a financial institution that provides a comprehensive range of financial products and services tailored to meet the needs of a diverse clientele, including individuals and businesses of all sizes.

 Meanwhile, Valu is a financial technology company offering customers and business comprehensive financial solutions. Most prominently, it provides Buy-Now-Pay-Later (BNPL) solutions in the MENA regions through U.

Company’s Value

The Board was presented with the fair value report for U’s share price, prepared by the independent financial advisor, Keys Financial Consulting S.A.E. (BDO). This report, approved by U’s General Assembly, established the fair value of U at C. EGP 15.586 billion (fifteen billion and five hundred eighty six million Egyptian Pounds) and is indicative in nature. U’s shares will be traded, and the opening price and price limits for the inaugural trading session shall be determined based on the mechanisms implemented by the Egyptian Exchange.

Karim Awad, Group CEO of EFG Holding, remarked, “This pivotal step is designed to maximize returns for our investors while fostering the sustainable growth of Valu, which is poised to emerge as an independent, listed entity with EFG Holding retaining a majority stake.”

It is worth nothing that recently Valu secured a fintech license from the Financial Regulatory Authority (FRA) enabling it to deliver a comprehensive end-to-end digital customer journey. With this license, Valu aims to transform how Egyptians engage with finance services. Furthermore, it aims to provide seamless electronic verification, digital contracts, and secure digital record-keeping, to enhance the customer experience. Ultimately, it aims to foster financial inclusion, offering a faster, safer, and more streamlined digital experience. This would allow individuals and businesses to access financial services effortlessly from anywhere.