EFG Hermes Holding, founded by Egyptian banker Karim Awad, is a renowned MENA financial services business that successfully advised United International Transportation Company (Budget Saudi) on its $121 million acquisition of Al-Jazira Equipment (AutoWorld).
The transaction, carried out through Budget Saudi’s subsidiary, Al Jozoor Al Rasekha Trucking Company (Rahaal), featured a share swap in which 7 million new shares were issued to seller SEDCO Holding and other institutional investors, with each share valued at SAR 65 ($17.3).
Karim Meleka, Co-Head of EFG Hermes’ Investment Banking division, highlighted the acquisition’s significance for Saudi Arabia’s mobility solutions market. “The combined entity will be a powerhouse in the industry, driving innovation and efficiency,” Meleka told reporters. “By unlocking synergies and optimizing operations, Budget Saudi and AutoWorld can enhance service offerings for corporate clients.”
EFG Hermes has a strong track record of assisting on major M&A transactions in the Gulf Cooperation Council (GCC) area. Recent transactions include advising Cenomi Retail on the sale of select brands to Abdullah Al-Othaim Fashion Company and supporting MENA bargain retailer Kazyon in the acquisition of a 50% share in Dukan earlier this year.
Under the direction of Egyptian banker Karim Awad, EFG Hermes has expanded its presence in securities brokerage, asset management, investment banking, private equity, and research across numerous areas.
The group declared a net profit after tax and minority interest of EGP2.5 billion ($52.24 million) for the full year of 2023, with record revenues of EGP14.7 billion ($307.57 million), a 34% increase from the previous year. As of December 2023, EFG Hermes’ total assets were EGP121.9 billion ($2.55 billion).
To strengthen its financial position, EFG Hermes issued EGP600 million ($12.54 million) in senior unsecured short-term notes for its subsidiary, Hermes Securities Brokerage Company. This is EFG Hermes’ sixth issuance and the second under a pre-approved EGP2 billion ($41.8 million) scheme.