Hermes Group finalizes the acquisition of 30 shares of Eastern Company worth $625 million with UAE-based Global Investment Holding Ltd.

EFG Hermes has completed advisory support for the acquisition of a 30% stake in Eastern Company, an Egyptian tobacco giant, by UAE-based Global Investment Holding Ltd (Global Investment Holding Ltd). The transaction was one of the flagship deals of the government's privatization program, which aims to attract foreign direct investment and develop private sector participation in the economy.

The leading investment bank in emerging markets, EFG Hermes, announced today that it has successfully completed advising investment firm Global Investment Holding Ltd on a US$625 million transaction involving the acquisition of a 30% stake in an Egyptian tobacco company from state-owned holding company Egyptian Chemical Industries (CIHC), which was approved by the government on September 3, 2023. EFG Hermes acted as sole financial advisor to Global Investment Holding Ltd on the transaction.

Maged El Ayouti, Executive Director and Deputy Head of Investment Banking at EFG Hermes, commented on the transaction:

"We are proud to be part of this landmark transaction, which has far-reaching positive implications for both Eastern Company and the wider economy. As one of the largest minority stake sales in Egypt's history and one of the largest foreign direct investment deals in Egypt over the past few years, this transaction reflects investors' continued interest in acquiring stakes in leading Egyptian companies, whether they are defensive sectors or high growth opportunities. This transaction was the latest in a series of successful M&A transactions we have completed over the past three years, totaling more than $6.5 billion. "

Eastern Company is the largest manufacturer and distributor of tobacco products in Egypt and its portfolio includes cigarettes, cigars, pipe and ground tobacco, as well as other related products such as cigarette filters and homogenized tobacco. The company has been an integral part of Egypt's economic structure for decades, being the market leader with a consistent market share of 70%.

This transaction was one of the major transactions on which EFG Hermes advised. These include the sale of a 55% stake in Vodafone Egypt to Vodacom for a total of EGP 2.7 billion; the sale of a 60% stake in Egyptian health food company Abu Auf to Emirati food and beverage company Agthia; the acquisition of a 100% indirect stake in confectionery and health food manufacturer BMB Group by Agthia; the sale of an 85.52% stake in Egyptian real estate giant SODIC to Aldar Properties for a total of USD 388 million; Abu Dhabi Ports Group's acquisition of a 70% stake in Egyptian shipping company Transmar for $140 million; Saudi Public Investment Fund's acquisition of a 33.4% stake in electronics and home goods retailer BTECH for $150 million; the sale of 100% of Bank Audi Egypt to First Abu Dhabi Bank; and a $530 million deal in which Dubai-based Gulf Islamic Investments acquired a 51% stake in Saudi's Al Meswak Clinics.

EFG Hermes also acted as sole broker for Global Investment Holding Ltd in executing this transaction.

Information on EFG Holding

EFG Holding (EGX: HRHO.CA - LSE: EFGD) is a representation of a financial institution with more than 40 years of successful experience in 11 countries on four continents. Through three verticals - Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFIs) (EFG Finance) and Commercial Bank (aiBANK) - the firm offers the market a comprehensive portfolio of revolutionary financial products and services, serving a growing base of clients and companies of all sizes.

EFG Hermes is a leading investment bank in the frontier and emerging markets (FEM), providing a broad range of financial services including advisory, asset management, brokerage, research and private equity. In our home market, we are a universal bank with a fast-growing NBFI platform including microfinance player Tanmeyyah, leasing and factoring provider EFG Corp-Solutions, financial technology giant Valu, digital payment platform PayTabs Egypt, Bedaya for mortgage finance and Kaf for insurance. In addition, the firm offers commercial banking solutions through aiBANK, a leading provider of integrated retail, corporate and Islamic banking products in Egypt.

We operate in the following countries:Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Singapore

For more information about us, please visit our website at www.efghldg.com

For more information, please contact:

May El Gammal

Chief Marketing and Communications Officer of EFG Holding

[email protected]

Omar Salama

Public Relations Manager EFG Holding

[email protected]

Public Relations Team EFG Holding

[email protected]

Note on forward-looking statements

In this press release, EFG Holding may make forward-looking statements, including, for example, statements of management's expectations, strategic goals, growth opportunities and business prospects. These forward-looking statements are not historical facts but represent only EFG Holding's views regarding future events, many of which are inherently uncertain and beyond management's control, and include, but are not limited to, financial market volatility, actions and initiatives taken by current and potential competitors, general economic conditions and the impact of current, anticipated and future legislation, regulation and regulatory actions. Consequently, users are cautioned against relying on forward-looking statements that speak only as of the time they are made.