Post for Investment proudly announces its first successful exit since its establishment; achieving an impressive IRR of 81%
Cairo, September 8, 2024:
Post for Investment (“PFI”); together with Ayady for Investment & Development S.A.E (“Ayady”) and NI Capital Holding for Financial Investments S.A.E (“NI Capital”) (together, the “Sellers”), have announced that they have entered into a definitive agreement to fully divest their stake in Tamweely Microfinance S.A.E (“Tamweely” or the “Company”); the leading non-banking financial services company in Egypt specializing in serving micro, small and medium enterprises (MSMEs). PFI was a founding shareholder in Tamweely in 2017 and held a 30% stake in the Company. The Company was acquired by a consortium consisting of SPE Capital, EBRD, TCV and BII at a valuation that exceeded EGP 2.5bn. This transaction marks PFI’s first successful exit since its inception in 2006, and has achieved an exceptional IRR of 81%.
Since its inception, PFI and Egypt Post have provided Tamweely with unparalleled support and contributions. Egypt Post has offered the Company access to 230 post offices in 24 governorates; allowing it to roll out its services quickly and efficiently, and to reach its customers all over Egypt. This exceptional infrastructure has resulted in the rapid growth of Tamweely’s loan portfolio and subsequently a faster route to profitability.
In parallel, PFI has worked closely with the other shareholders to support the growth of the company through the appointment of an incentivized professional management team, leveraging their institutional relations with the Egyptian Banking sector to secure much needed funding for the expansion of the Company’s operations, and effecting the best practices of governance. These factors have led to positioning Tamweely as one of the largest Microfinance companies in the Egyptian market; soliciting strong interest from International Developmental Financial Institutions and Financial investors alike.
Ahmed Ali Abdelrahman; CEO and Managing Director of PFI said: “This transaction is a milestone in PFI’s transformation from an Investment holding company into a major active investor in the Egyptian market. It also highlights the role that PFI plays in leveraging Egypt Post’s assets; such as its network of over 4,500 branches, its unique customer base and its unparalleled brand equity in the minds of all segments of the Egyptian society. This transaction also demonstrates the exceptional business model of PFI that allows it to make and manage investments that maximize our shareholder’s return while also creating tangible social impact”.
Gamal Guemeih; Chief Investment Officer of PFI also said: “We are proud to have negotiated and concluded this transaction in cooperation with the team at NI Capital. This exit is in line with our newly adopted investment strategy that primarily focuses on holding controlling stakes in Financial and Logistical Services; capitalizing on Egypt Post’s legacy in both sectors. The proceeds will help fund our ambitious pipeline and will be reinvested in multiple opportunities over the coming year”.
The sellers were advised by ADSERO - Ragy Soliman & Partners (legal advisor). The investment consortium was advised by MF Strategy, Mediterranean Corporate Finance (MCF), Helmy, Hamza and Partners – a member firm of Baker & McKenzie International, and BLC Robert & Associates (legal advisors), PricewaterhouseCoopers (financial advisor), IBIS Consulting (ESG and Impact), and various other consultants on commercial and technical matters.
The transaction closing remains subject to regulatory approvals and the satisfaction of certain conditions agreed between the parties.
About Post for Investment:
Post for Investment is the Investment arm of Egypt Post. With a capital of EGP6bn, its mandate is to invest in the Egyptian market to generate long-term financial returns and social impact that is beneficial to all stakeholders. The company has a portfolio of over 18 investments in multiple sectors, including telecom, NBFS, sports and other services.
About Tamweely Microfinance:
Established in 2017, Tamweely Microfinance has emerged as a leading player in the Egyptian non-bank financial services sector, offering financing and ancillary services dedicated to empowering micro, small and medium enterprises (MSMEs). With its commitment to bringing innovative and seamless financial services to Egypt’s unbanked and under-served customers, Tamweely has served more than 500,000 clients and disbursed more than EGP 17bn since its inception and today operates a branch network of 230 branches and more than 3,950 loan officers, across 24 governorates.