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Bill Snow releases a new book on mergers and acquisitions

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Sahfy Sahfy
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Bill Snow releases a new book on mergers and acquisitions
Bill Snow releases a new book on mergers and acquisitions

This updated second edition is the go-to resource for business owners and investors seeking practical guidance and real-world advice on navigating successful M&A transactions. With a focus on providing useful techniques and comprehensive insights, this book goes beyond mere case studies to cover international laws and regulations, environmental considerations, and actionable instructions that can be readily applied.

Written in clear and accessible language, Mergers & Acquisitions For Dummies takes readers through the entire M&A process, describes different types of transactions, demonstrates various ways to structure a deal, defines methods to identify and contact targets, provides insights on how to finance transactions, reveals what helps and hurts a company’s valuation, offers negotiating tips, explains how to perform due diligence, analyzes the purchase agreement, and discloses methods to help ensure the combined companies are successfully integrated.

Whether you are a transactions pro, a service provider tangentially involved in transactions, or a student thinking of becoming an investment banker, this book will provide the insights and knowledge that will help you become successful. Business owners and executives will also find this book helpful, not only when they want to buy or sell a company, but if they want to learn more about what improves a company’s value. The evaluation process used by M&A professionals to transact a business sale is often quite different from the processes used by owners and executives to manage those businesses.

With over 30 years of experience, Bill Snow is a sought-after authority in the field of M&A and can discuss topics such as:

How Covid has affected inventory – “just-in-time” is now “just-in-case”
Entering the M&A zone: Why selling a company is often easier than buying a company
The real reasons M&A deals do not close
Beyond the numbers: What factors really drive a company’s valuation
So you want to buy a company? Tips on how to contact business owners
How the skills at the poker table can improve your deal negotiation skills
Comprehending how the M&A process can help a business owner create value
Why adjusted EBITDA has become a “Frankenstein’s Monster” in the deal world
How to determine if a competitor might be a viable acquirer…Without letting them know your company is for sale
What helps and what hurts a company’s valuation?
Lessons from pop culture: 11 seemingly disparate non-business references from movies and music
Stop asking, start offering: The secret to opening doors
How quality of earnings reports can enhance value

ADES Holding to float 30% stake on Tadawul, IPO could surpass $1 billion valuation

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Sahfy
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ADES Holding Company, a leading oil and gas drilling and production services provider in the Middle East and North Africa region, announced today that it intends to proceed with an initial public offering (IPO) and the listing of its shares on the Saudi Exchange’s Main Market. The IPO is expected to raise significant capital for the Company, which could fetch more than $1 billion, Reuters reported last November citing two sources familiar with the matter. The IPO is also expected to increase the Company’s visibility and attract new investors.

The IPO is scheduled to take place in September 2023. The offer will comprise an offer of 338,718,754 ordinary shares, representing 30% of the Company’s issued share capital (after the increase) through the sale of a mix of existing shares and newly issued shares. The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the Capital Market Authority (CMA) and the Saudi Exchange.

The Offer Shares will be offered for subscription to individual investors (Individual Subscribers) and institutional investors (Participating Parties), including Participating Parties outside the United States in “offshore transactions” in accordance with Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”).

A maximum of 338,718,754 shares, representing 100% of total Offer Shares, will be initially allocated to Participating Parties. The financial advisors (as defined below) may, in coordination with the Company, reduce the number of shares allocated to Participating Parties to 304,846,879 shares, representing 90% of total Offer Shares, to accommodate for Individual Subscriber demand.

A maximum of 33,871,875 ordinary shares, representing 10% of the total Offer Shares, will be allocated to Individual Subscribers. Individual Subscribers must, at the time of subscription, have an active stock portfolio at a Capital Market Institution associated with the Receiving Agent being subscribed through, otherwise subscriptions will be rendered void and the amounts paid will be refunded.

The final Offering price will be determined at the end of the book-building process.

The Company appointed EFG Hermes Saudi Arabia (“Hermes”), Goldman Sachs Saudi Arabia (“Goldman Sachs”), J.P. Morgan Saudi Arabia (“J.P. Morgan”) and SNB Capital Company (“SNB Capital”) as its financial advisors (collectively referred to as the “Financial Advisors”) and global coordinators. In addition, the Company has appointed SNB Capital Company as Lead Manager (the “Lead Manager”) in relation to the Offering. The Company has also appointed EFG Hermes Saudi Arabia, Goldman Sachs, J.P. Morgan, SNB Capital, GIB Capital, HSBC Saudi Arabia, Al Rajhi Capital and Saudi Fransi Capital as bookrunners and underwriters (the “Underwriters”) in relation to the Offering.

Arab National Bank (“ANB”), Alrajhi Bank (“Alrajhi”), Riyad Bank and The Saudi National Bank (“SNB”) have been appointed as receiving entities (collectively, the “Receiving Entities”) for the Individual Subscribers’ tranche.

Lazard Financial Advisory (“Lazard”) has been appointed as Independent Financial Advisor to the Company.

Inside the Success of Munjz’s Revolutionary Property Management Solutions

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Sahfy Sahfy
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Inside the Success of Munjz’s Revolutionary Property Management Solutions
Inside the Success of Munjz’s Revolutionary Property Management Solutions

Munjz, the Saudi-based, prop-tech cloud platform designed to cater to KSA property owners and developers, sets a new precedent within the property management industry after gaining robust traction in the past year. The company has revealed insight into its recent growth since securing a $5 million Pre-Series A funding round in February 2023, solidifying its position as a leader within the space. 

Established in 2018, Munjz emerged as a response to address the needs of both residential and commercial tenants, providing innovative solutions for services such as on-demand maintenance accessible through their platform. The company shifted from B2C to B2B in 2021, introducing a comprehensive multi-solution digital platform catering to the maintenance and facility management industry. Today, the company uses enhanced property management systems (PMS) to facilitate streamlined operations, enabling property and business owners, facility managers, and maintenance managers to manage their operations and property revenues on a unified hub. 

Munjz offers a comprehensive suite of prop-tech solutions tailored to different needs within the property management landscape. Munjz Connect is a property management software B2B platform that streamlines maintenance management for both commercial and residential properties. Munjz Now, a B2C platform, empowers homeowners and residents to control their maintenance tasks directly. Meanwhile, Munjz Market targets vendors and service providers, facilitating their engagement with property management processes. Through these distinct platforms, Munjz creates a unified property management ecosystem, enhancing efficiency and communication among stakeholders, encompassing property operations, activities, and expenses in real time.

Since Q1 of 2023, the company has assumed management of 3,500 additional units, expanding its portfolio to 12,000 total. Among its extensive clientele are more than 90 esteemed brands that have partnered with Munjz to manage the maintenance of commercial properties, including household names such as McDonald’s, Dunkin Donuts, and Al Majdiah Residence. 

Subscribed users can manage their own team of technicians, vendors, and contractors through the platform or tap into Munjz’s extensive database of service providers. Activating one subscription plan gives access to multiple parties, such as tenants, employees, and service teams, including technicians, to automate order requests, purchases, payments, and performance tracking. With Munjz offering tailor-made subscriptions, new subscribers are encouraged to explore and utilize the free 15-day trial and build the perfect plan, with the option to avail an annual discount.

“We are thrilled to provide Munjz Connect to the wider property market through a subscription base,” said Abdullah Al-Daij, Founder and CEO of Munjz. “Our platform embodies the convergence of advanced technology and industry expertise. It empowers property managers and owners to effortlessly oversee their operations while enhancing the experience for residents and service providers.”

With Munjz’s innovative features, user-centric design, and unwavering dedication to simplifying complex property management workflows, it is set to revolutionize the industry, setting new standards for efficiency, collaboration, and growth in one place. For more information about Munjz and its groundbreaking solutions, please visit https://munjz.com.

Strong demand and lack of supply will continue to drive growth for the UAE’s real estate market in 2023, says CBRE

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Sahfy Sahfy
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Taimur Khan, Head of Research – MENA at CBRE in Duba
Taimur Khan, Head of Research – MENA at CBRE in Duba

CBRE anticipates that a strong demand and a lack of supply in key sectors will continue to support a positive outlook for the UAE’s real estate market in 2023, according to the company’s 2023 UAE Real Estate Market Outlook Mid-Year Review.

Global economic headwinds, led by tighter monetary policy regimes and persistently high inflation in major economies, have led to downgrades in both global and the UAE’s GDP growth forecasts. At the start of the year, the UAE’s economy was expected to grow by 3.5% and the latest forecast now puts this number at 2.2%. However, the downgrade has been down to the expected contraction in the UAE’s hydrocarbon sector, which is forecast to contract by 3.3% (compared to the 2.7% growth expected in January 2023). The non-hydrocarbon sector, on the other hand, is now estimated to register 4.2% growth in 2023, up from the previously estimated growth of 3.9%.

Despite a weaker than expected hydrocarbon sector and even amidst what we now expect will be a prolonged rates cycle, which is likely to impact demand, CBRE continues to maintain many of its forecasts made in early 2023.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “In large parts, we are seeing market performance playout as expected in 2023, where despite some global economic concerns, the lack of supply in key commercial sectors such as the industrial & logistics, office, and even segments of its retail sectors has underpinned strong performance. The continued growth of demand in the residential sector has been more surprising. That being said, we nevertheless maintain our outlook that the rate of price growth by year-end will have tapered, but still remain positive.”

CBRE’s report details the company’s 2023 UAE real estate market outlook mid-year review for multiple sectors.

Offices
Activity levels in Abu Dhabi’s office market have been strong throughout the first half of 2023, with new office rental contract registrations up 12.4% year-on-year. Rents have continued to increase although the annual rate growth rates have moderated, across all segments of the market as expected. In Dubai, whilst occupier demand remains strong and has driven average occupancy levels to 92.7% as at Q2 2023, the lack of available stock is impacting take-up. Average rents have continued to rise, where in the year to Q2 2023, Prime, Grade A, Grade B, and Grade C rents have grown by 17.2%, 11.0%, 16.4%, and 30.0%, respectively. Only the Grade C segment has not shown a moderation in its rate of change since the start of the year, other than this market has developed as expected.


Residential

Year-on-year, in the year to date to H1 2023, the total number of transactions in Abu Dhabi has increased by 94.1%. This has been underpinned by a 160.4% increase in off-plan transactions over this period. Whilst on an annual basis average Abu Dhabi’s villa prices have started to grow at a faster rate, for apartments we have seen this rate moderate in Q2. For the latter, we still expect this trend to reverse over the course of the year. In Dubai, the total volume of transactions has broken records in the first half of the year, up 43.3% year-on-year in the year to date to H1 2023. This surge in demand has also underpinned higher than expected price growth. On the rental front, in Dubai, the growth rate of average rents has moderated in each of the first six months of the year. In Abu Dhabi, the rental market to date has performed as forecasted.

 

Hotels
The UAE’s ADRs, as expected, have softened year-on-year in the year to date to June 2023 by 1.9%. Over the same period, we have seen the occupancy rate rise by 4.1 percentage points, to reach 75.7%. This increase in occupancy has been at a faster rate than expected and as a result, we have seen RevPARs increase by 3.6% over the same period noted above. This better than expected performance can be in parts put down to the reopening of the European tourism market. Given the UAE’s hub status, tourists are both deciding and being induced into breaking-up their trips to the continent, which has helped underpin stronger performance. This, in turn, is helping drive demand and profitability in what is usually the start of the low season. The beachfront luxury segment of the market has underperformed the wider market in occupancy, ADR and RevPAR terms. We no longer expect a softening in ADRs and hence, we expect RevPARs to post positive performance for the year.

Retail
As we reach the halfway point of 2023, we have indeed seen a convergence in rental performance. In Abu Dhabi and Dubai, average rental growth reached 16.9% and 38.0% in the year to Q2 2023, up and down from the 5.6% and 51.5% year-on-year growth rates registered in 2022 respectively. In Dubai, year-on-year in the year to date to June 2023, we have seen new retail contract registrations fall by 16.2%. Whilst occupier demand remains very strong, the availability of prime quality stock is curtailing activity levels. In Abu Dhabi, long-awaited concepts, both new and repositioned, have underpinned an increase in the number of new retail contract registrations in Q2 2023, although a sluggish Q1 has meant the total is down marginally y-o-y. 

Industrial & Logistics

On the whole, in the 12 months to June 2023, we have seen rental growth continue in the industrial and logistics sector over the course of the year, with average rents in Abu Dhabi and Dubai increasing by 6.4% and 19.0%, respectively. As at Q2 2023, average rents in Abu Dhabi stood at AED 393 per square metre and in Dubai at AED 41 per square foot. However, whilst we have seen uniform growth across sub-markets in both cities, the rate of growth has certainly been very polarized, as expected. Institutional quality stock has recorded significant rental increases over the first half of the year, whereas secondary stock, in most cases, has seen more muted rental growth in comparison over this period.

OQ Wins the ICF Coaching Impact Award

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Sahfy Sahfy
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OQ Wins the ICF Coaching Impact Award
OQ Wins the ICF Coaching Impact Award

OQ, the global integrated energy group, has been honoured with the prestigious ICF Coaching Impact Award by the International Coaching Federation (ICF). The award recognizes OQ’s exceptional use of coaching to enhance organisational culture, attain remarkable objectives, empower staff, and drive national progress. Presented biennially to the foremost emerging organization, the award signifies the highest global coaching standards.

OQ’s recognition applauds its dedication to human development, emphasising staff qualification and societal support through personal coaching. The group’s executive management plays a pivotal role, fostering these initiatives to strengthen coaching programs. From 2021 to 2023, OQ coached 530 employees, trained 80 leaders to coach teams, and achieved a return on investment in coaching of around USD $500,000. With 1,775 coaching hours completed and 49 coaches trained, 6 are internationally accredited.

The positive impact of coaching and employment extended to the public and private sectors through the coaching programs.

OQ triumphed over a competitive field of over 100 international companies to secure the ICF Coaching Impact Award. Out of the 46 finalists, OQ emerged as the global leader in this category.

OQ’s culture of continuous growth has thrived in partnership with Takatuf, its development collaborator. This collaboration has empowered leaders, trained employee cohorts, and guided fresh graduates towards International Coaching Federation accreditation.

Olivia Al Farsi, Vice President People and Culture said: ‘”Coaching is vital in Oman’s evolving landscape and a crucial skill. At OQ, we invest in cultivating coaching expertise to reshape our culture, elevate business results, and strengthen adaptability. This milestone prompts us to extend coaching to teams for stronger internal and external ties, and to individuals to enhance career and family wellbeing.”

SRMG Ventures Bets on Anghami to Lead Music Streaming in MENA

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Sahfy Sahfy
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SRMG Ventures Bets on Anghami to Lead Music Streaming in MENA
SRMG Ventures Bets on Anghami to Lead Music Streaming in MENA

SRMG Ventures, the venture capital arm of SRMG, has today announced a $5 million investment in Anghami, the leading music and entertainment streaming platform in the MENA region. An investment by the MENA region’s largest integrated media group in Anghami, marks a significant development in the region’s rising music and audio industry. SRMG Ventures will bolster Anghami’s growth trajectory through its extensive media reach, content library, and portfolio of leading assets in audio/podcasts and enable it to capture a larger share in the fast-growing sector that is forecasted to reach $700m in 2026.

Anghami has established itself as the region’s leading music and entertainment streaming platform. With 120 million registered users (a significant increase from 75 million users in 2021), a substantial subscriber base and a catalogue comprising of more than 100 million songs, Anghami is the go-to platform for Arabic and International music, podcasts and entertainment.

Since launching in 2012, Anghami has broadened its portfolio beyond music streaming. It now provides in-house productions, branded music and video content, concerts and live events, a record label for Arab artists, podcasts, a music lounge with live entertainment, exclusive and original Arabic content, along with its renowned music streaming service.

SRMG Ventures’ investment in Anghami reflects its unique and leading position in the promising music and audio segment of the media industry. The MENA music and audio industry is forecasted to grow at a CAGR of 11%, outpacing the global market. This rapid growth, further highlighted by the rising prominence of Arab stars and local talent, coupled with the strategic presence of international labels including Warner, Universal, and Sony, is cementing MENA’s position as a pivotal player in the global music landscape.

Anghami’s breadth of data and its leading distribution capabilities present compelling collaboration opportunities with SRMG. Billboard Arabia, the latest addition to SRMG’s media portfolio, will introduce several charts using data from the leading digital streaming platforms – including Anghami – to highlight the artists and songs driving the global and regional music industry. In addition, Thmanyah, Independent Arabia, and Hia, all notable audio content creator outlets under SRMG, are already present within the Anghami platform, setting the stage for continued collaboration between SRMG and Anghami.

Jomana R. Al-Rashid, CEO of SRMG, said: “Audio consumption is growing fast in the MENA region. In 2022 alone, the market size for audio increased by 35%. This demand coupled with the commercial opportunity it presents makes digital audio and media one of the investment priorities for SRMG Ventures. These opportunities are also demonstrative of our strategy and commitment to support and develop the media ecosystem, act as a catalyst for further growth and enhancement of SRMG’s offerings and services. Today, Anghami has been able to secure one of the largest user bases in audio streaming in the region, and has developed an impressive platform with extensive technological capabilities – a testament to the leadership of founders Elie Habib and Eddy Maroun. We’re looking forward to working closely with the Anghami team to realize our shared vision of elevating the region’s media and entertainment industry.”

Eddy Maroun, Co-founder & CEO of Anghami, said: “This investment from SRMG Ventures marks a significant milestone for Anghami. We have continually evolved to meet our audience’s changing demands and support the region’s rising entertainment and music industry. Working together with SRMG, a leader and innovator in regional media, Anghami will be able to unlock further opportunities to champion the music ecosystem. This partnership will propel regional artists to greater heights, expand their global reach, and create new touchpoints for our users and artists alike.”

SRMG Ventures’ investment in Anghami aligns with the Group’s strategy to invest in businesses and areas of commercial growth, focusing on media creators, immersive and interactive entertainment, and digital media platforms and enablers that are at the forefront of technological and creative innovation. SRMG Ventures inaugural investments included Telfaz11, a Saudi based creative media studio, and Vuz, a leading VR-enabled social media application. As part of the investment agreement, SRMG will be invited to join Anghami’s board of directors and will have the opportunity to increase its investment in Anghami in the future.

Ajman Tourism Inks MoU with City University Ajman for Enhanced Cooperation & Experience Exchange

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Sahfy Sahfy
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Ajman Tourism Inks MoU with City University Ajman for Enhanced Cooperation & Experience Exchange
Ajman Tourism Inks MoU with City University Ajman for Enhanced Cooperation & Experience Exchange

The Ajman Department of Tourism Development – ADTD signed a memorandum of understanding with City University Ajman which aims to establish a partnership between the two parties to enhance cooperation, knowledge and expertise exchange in community services and institutional experiences.

The memorandum of understanding was signed by His Excellency Mahmood Khaleel Alhashmi, Director General of the Ajman Department of Tourism Development, and Mr Imran Khan, President of City University Ajman.

As per the agreement, City University Ajman will provide partial scholarships for the employees of the ADTA and their families who will be nominated according to agreed criteria. In return Ajman Tourism will facilitate volunteer work for the university students and allow them to participate in joint events and programs. It also includes strengthening partnerships with strategic partners of both parties and mutual promotion of activities and events.

As part of the agreement, regular meetings will be held to review the best practices of both parties in all work fields, experience and knowledge exchange through field and academic training related to skills development, and specialized training programs.

The collaboration also includes cooperation in innovation activities and entrepreneurship to achieve common goals at the local and global levels in various areas including participation and exchange of experiences related to creativity and innovation which contributes to accomplishing common strategic goals, creating mechanisms to operate innovation labs as per international best practices, and cooperation in evaluating mutual creative and innovative ideas.

In this regard, His Excellency Mahmood Khaleel Alhashmi, Director General of the Ajman Department of Tourism Development stated, “Signing this agreement with City University Ajman comes as part of the department’s endeavour to enhance cooperation and establish partnerships with prominent entities in the emirate such as City University Ajman which is a renowned higher education provider offering outstanding academic programs for students.

Mr. Imran Khan, President of City University Ajman said, “We are thrilled to join efforts with Ajman Tourism to reinforce the position of the emirate and highlight its excellent academic programs that meet market needs and contribute to the advancement of the society. We look forward to establishing a fruitful partnership with Ajman Tourism, strengthening joint efforts and experience exchange at all levels.”

President El-Sisi Meets Prime Minister, Minister of Agriculture and Land Reclamation

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Sahfy Sahfy
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President El-Sisi Meets Prime Minister, Minister of Agriculture and Land Reclamation
President El-Sisi Meets Prime Minister, Minister of Agriculture and Land Reclamation

Today, President Abdel Fattah El-Sisi met with Prime Minister Dr. Mostafa Madbuly and Minister of Agriculture and Land Reclamation Mr. El Sayed el Quseir.

The Spokesman for the Presidency, Counselor Ahmed Fahmy, said the meeting reviewed the national agricultural projects nationwide, in light of the steady progress achieved in this vital sector over the past years, within the State’s plan to bring about a radical change in Egypt’s agricultural map through massive and unprecedented efforts to reclaim millions of acres across Egypt over a short period of time. More than 3 million new acres will be added soon to agricultural land, which is more than one third of the entire agricultural land area in the country.

President El-Sisi was briefed on efforts to increase and improve the productivity of the acres in Egypt in terms of quantity and type, which led to Egypt’s progress in the global ranking of acre productivity into the top five in many crops, including rice, maize and wheat. The President gave directives to continue working on the governance of fertilizer use and the operationalization of modern water-saving irrigation systems, as well as facilitating the use of mechanization in agriculture to reduce loss during harvesting, in addition to the important role of agricultural scientific research in this regard. The President reviewed the growth rates of Egypt’s fresh and manufactured agricultural exports, which achieved over $ 7.5 billion in 2022. The President gave directives to continue intensive efforts in terms of providing full support to farmers, continuously working to improve the quality, as well as preserving and enhancing the reputation of the Egyptian product globally, by adhering to international standards in this regard.

President El-Sisi stressed that the significant efforts to develop the agricultural sector and to restore Egypt’s historical status in this field are part of comprehensive development efforts, integrating all economic sectors, such as agriculture, industry, infrastructure, roads and facilities, transport and trade, to achieve the highest value added for Egyptian products, to help Egypt  enhance food security, in light of the current international conditions, in addition to advancing all components of the national economy , especially providing job opportunities, increasing exports and limiting imports, to improve the standard of living of citizens.

Valu Transforms Into a Comprehensive Financial Technology Institution

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Sahfy Sahfy
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ڤاليو تتحول إلى مؤسسة شاملة في مجال تكنولوجيا الخدمات المالية
ڤاليو تتحول إلى مؤسسة شاملة في مجال تكنولوجيا الخدمات المالية

Valu, MENA’s leading financial technology company, announced today a strategic rebranding, marking a pivotal shift in its brand architecture. Today, Valu is no longer just a Buy-Now, Pay-Later (BNPL) platform nor a consumer finance player only; it has evolved to become a universal financial technology powerhouse with a comprehensive suite of financial solutions. The rebranding is a milestone in the company’s journey of growth and transformation as it represents its commitment to better serving its clients and expanding its reach in the dynamic world of financial technology.

 

Valu has consistently been at the forefront of innovation and a game-changer in the fintech space since its inception as the first BNPL platform in the MENA region. It now hosts a universe of cutting-edge financial solutions and services that empower individuals to pursue their aspirations and improve their quality of life. As the fintech industry evolves rapidly, Valu recognizes the importance of adapting to meet clients’ changing needs and demands. This strategic rebranding not only reflects Valu’s growth but underscores the company’s dedication to innovation, efficiency, and excellence in serving a broader range of clients across various sectors.

 

Under the new brand identity, Valu has refreshed its logo, application, and overall visual identity to represent the company in a more modern and dynamic way. The new brand identity embodies the company’s core values of responsibility, innovation, prioritizing people, and agility, while the revamped application offers an expanded range of services and solutions. The application’s new design highlights Valu’s enhanced capabilities and investments in cutting-edge technologies through its ongoing commitment to innovation and to providing clients with unparalleled access to financial solutions through a universal platform.

 

Walid Hassouna, CEO of Valu, commented on the news: “One of the key drivers behind our strategic rebranding is our unwavering focus on client centricity. We developed our offerings to provide clients with everything they need through one platform. Our expanded suite of fully digitalized products and services will empower individuals and businesses and foster financial inclusion. Valu today is no longer a consumer finance company; we now offer an instant cash redemption program, savings solutions, investment products, B2B services platform, and more. As such, it was about time for Valu to undergo a brand restructuring to reflect the breadth and depth of its brand portfolio as well as its current position as a universal financial technology powerhouse. The rebranding further encompasses an intensified effort to foster strategic partnerships and collaborations with industry leaders, global brands, and market innovators to accelerate the development and deployment of ground-breaking solutions that will shape the future of the fintech industry.”

 

The newly optimized structure of the brands under the umbrella of Valu will be as follows:

 

  • U – BNPL platform offering financial program up to 60 months with the following programs:
    • Sha2labaz: An instant cash-redemption program
    • Ma3ak: A program targeting university students between 18 – 23 years of age
    • Family: A program qualifying clients’ first-degree relatives over 16 years of age to acquire a borrowing limit
    • Ulter: A special program that enables customers to make high-value purchases of up to EGP 15 million
  • Business – A B2B services platform offering a corporate HR employee management system, benefits, payroll cards, and other financial services (formerly Paynas, which was acquired by Valu in 2022).
  • Akeed – Virtual Lease to Own Product (VLTO), a save-to-buy platform embedded within Valu’s universe that allows clients to save and gain returns.
  • Flip – Allows customers to send and receive funds. It is the most widely accepted gift card in Egypt.
  • Invest – An investment platform that will allow customers to make strategic investments in various funds, including the current AZ Valu Fund, a money-market fund launched in partnership with Azimut providing people with a flexible and convenient investment solution and EFG Hermes ONE, a state-of-the-art online securities trading platform that provides users with one-click access to global markets anytime, anywhere.

 

The strategic rebranding coincides with the company’s continuous commitment to strengthening its team, expanding its presence, and driving positive change within the fintech ecosystem. Its dedicated professionals remain focused on fostering lasting relationships with their clients, understanding their unique goals, and providing tailored solutions that drive measurable results.

 

Key Valu Milestones to Date

 

  • Forbes Middle East listed Valu as one of the ‘Top Fintech companies’ in 2021, 2022 and 2023
  • Named ‘Fintech Company of the Year’ at the Gulf Business Tech Awards in 2021 and 2022
  • Entrepreneur Middle East awarded Valu 3 times at the ‘Leaders in Fintech Awards 2021’ and ‘Leaders in Fintech Awards 2022’ – as Best BNPL platform, and at the ‘Tech Innovation Awards 2021’ as Fintech Company of the Year
  • Awarded ‘Fintech Innovation of the Year’ at the Seamless Awards in 2019
  • Recognized as the ‘Best Fintech Startup in North Africa: BNPL Service’ at the Africa Bank 4.0 Awards in 2023
  • Honored as the ‘Most Innovative Fintech Company’ by the Global Brands Magazine 2023
  • Won the title of ‘Best Ramadan Comedy Ad’ at the Creative Industry Summit in 2023 and received the accolade for ‘Best Marketing Campaign’ at the International Finance Awards 2023
  • Almost 3 million transactions with over 3 million app downloads across the board
  • More than 5,500 points of sale and service providers over 1,500+ e-commerce platforms
  • Over 1 million active Valu clients across the board
  • Total gross merchandise value of EGP 5.8 billion as of 2022 on the BNPL platform, U — a twofold increase from the EGP 2.4 billion booked in 2021
  • Amazon acquired USD 10 million in EFG Holding GDRs with the option to place that investment into Valu in the future, translating into 4.255% of Valu’s issued share capital
  • Fully acquired Paynas in 2022 — a full-fledged employee management and benefits company that offers services to MSMEs. Paynas is currently rebranded to Valu
  • Valu also acquired a minority stake in Kiwe — the first social payment app for youth in Egypt
  • Valu has a 2% indirect stake in Paytabs Egypt
  • Valu acquired a minor stake in Hoods, the Middle East’s leading live commerce platform
  • Valu owns a 10% stake in EFG EV Fintech, EFG Holding’s accelerator and incubator

Orascom Development Egypt: Gouna masterplan amendments add value

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Sahfy Sahfy
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Orascom Development Egypt Gouna masterplan amendments add value
Orascom Development Egypt Gouna masterplan amendments add value

In a recent report, HC Brokerage issued an update note about Egypt’s real-estate sector, through shedding the light on Orascom Development Egypt where they expect ODE to offset potential FX losses.

اتش سي: أوراسكوم للتنمية مصر تتمتع بموقع متميز وخطط نمو قوية

 Mariam Elsaadany, real estate analyst at HC Brokerage commented: “Gouna masterplan amendments should pave the way for significant value unlocking: In February 2023, Orascom Development Egypt (ODE) signed a new masterplan agreement with the Egyptian authorities, including the following terms: (1) approval of a new master plan for the remaining land bank in El Gouna and 1,000 hotel rooms at the company’s discretion, (2) granting ODE the right to connect its lagoon system to the sea via two new water canals to improve water quality in existing and future projects, (3) reducing the shoreline setback for the remaining land bank from 200 meters to 105 meters, which allows ODE to make commercial use of the most prime land of the destination, and (4) amending the transfer fee payable by ODE on real estate sales for the remaining land bank, which is fixed for ten years and will be paid in advance over 15 years, and (5) granting environmental permits for 24 projects in Gouna and exonerating ODE from all charges and settlement of all disputes with the Environment Protection Agency (EPA). The amendments remove the overhang on the stock and allow significant value extraction from its 16.6m sqm, which we had previously valued at an NPV of only EGP209/sqm, compared to EGP402/sqm currently. Moreover, ODE’s recurring income business benefitted from a strong touristic season, contributing c32% to 1Q23 revenue, up from c28% in 1Q22, and c29% to EBITDA, up from c20% in 1Q22. Nonetheless, ODE’s USD and EUR debt balance, representing c73% of total debt, exposes it to significant FX losses during EGP devaluations, despite recording higher hospitality revenue in EGP terms helped by the EGP devaluation. Accordingly, we expect more one-off transactions, including land sales and non-core asset sales, to offset possible FX losses and margin compression from the real estate business, such as the company’s sale of an EGP390m high-margin land plot in Gouna in 3Q23.”

Mariam concluded: “We expect accelerated collections on shorter payment plans in first-home projects and expect reduced risk of margin erosion due to core and shell offerings: We assume substantial increases in ODE’s real estate selling prices, hospitality average room rates (ARRs), and rental prices to preserve its profitability amid inflationary pressures. Annual urban headline inflation averaged 31.6% in 1H23 compared to a c59% increase in residential selling price increase and a c86% increase in hospitality ARR over the same period, demonstrating the company’s efforts to preserve its margins. Margin compression for ODE is limited during the coming two years, in our view, due to (1) the company’s strategy to raise selling prices and (2) expected one-off sales going forward, and (3) more core and shell offerings allow it to avoid margin erosion on finishing materials. For the real estate business, we expect a drop in sales volumes over 2023—2024e, in line with management’s strategy to hold onto inventory, where it opts to reduce the number of units launched to the market during uncertain times and offers them when the profitability outlook is higher. Our total receivables estimates over our forecast period stand at EGP151bn, including the company’s share of O West receivables. Our CAPEX estimate is EGP90.2bn for the forecast period, which implies an average margin of c40% for the company’s residential business. Over our forecast period, we increased hospitality occupancy rates to range from c70%–80% in Gouna and increased ARRs at an average of c10% annually. We did not include in our estimates any of the 1,000 planned hotel rooms in Gouna, and it is worth noting that the company is not obliged to build these rooms and can abandon the plan if it chooses to. Our hospitality estimate yields a c28% 4-year CAGR in hospitality revenue, and we expect the company’s hospitality margin to average c30% over our 2H23–2027e forecast period. We expect ODE’s 2023e net debt-to-equity to drop to 0.46x from 1.10x in 2022 as its cash balance grows on the back of strong collections. It is worth noting that the company has reduced payment plans in O West, which we believe affirms strong demand.  We also highlight the increase in the company’s interest expense, especially on the EUR and USD debt, given that c73% of its debt is in these currencies.”

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