• Amazon will acquire a 3.95% stake in Valu by exercising a 2022 option agreement with EFG Holding.
• The deal converts Amazon’s earlier USD 10M investment into direct equity, triggered by Valu’s upcoming listing on the EGX.
• Shares will be purchased at EGP 6.041 each via block trade on Valu’s first trading day, pending regulatory approval.
  

Valu

U Consumer Finance S.A.E., known under the trademark Valu, a subsidiary of EFG Holding, and EFG Holding announced that Amazon has agreed to exercise its option to acquire a direct equity stake in Valu. 

In May 2022, Amazon signed an Option Agreement with EFG Holding. As part of this agreement, it purchased USD 10 million worth of GDRs (Global Depository Receipts) issued by EFG Holding.

Thus, Amazon did not immediately become a shareholder in Valu.  Instead, it secured the option to convert those GDRs into a direct ownership stake (4.255%) in Valu, However, this is only if a “qualified liquidity event” occurs.

Amazon

Now, Amazon has decided to exercise its option to become a direct shareholder in Valu. Moreover, it is now converting its previous investment into a direct equity stake in Valu. As a result, Amazon will own approximately 3.95% of Valu. 

This comes with  Valu’s upcoming listing on the Egyptian Exchange (EGX). The transaction will be executed on the first trading session of Valu shares on the Egyptian Exchange. The price per Valu share is set at EGP 6.041. Furthermore, the translation will be done through the block trade mechanism, following receipt of the necessary approval.

In short: Amazon is officially becoming a shareholder in Valu, acquiring a 3.95% stake at the time of its IPO, under the terms agreed in 2022. Furthermore, the deal formally converts Amazon’s earlier USD 10M investment into direct equity, triggered by Valu’s upcoming public listing on the EGX.