U.S. tech giant Amazon has exercised its option to acquire a direct equity stake in Valu, one of Egypt’s leading financial technology companies, marking a key milestone in the firm’s growth as it prepares to begin trading on the Egyptian Exchange (EGX).
Amazon is set to acquire approximately 3.95 percent of Valu at a price of USD 0.12 (EGP 6.041) per share, under the terms of a 2022 agreement with Valu’s parent company, EFG Holding. The transaction, subject to regulatory approval, will be executed via a block trade on 23 June, the company’s first trading session on the EGX.
Valu was officially listed on the EGX on 21 May. The move comes amid growing international investor interest in Egypt’s financial sector, despite persistent regional macroeconomic headwinds.
As part of the original agreement signed in May 2022, Amazon acquired USD 10 million (EGP 506.1 million) worth of global depository receipts (GDRs) in EFG Holding, with the right to convert those GDRs into a direct equity stake in Valu upon the occurrence of a “qualified liquidity event,” which materialized with Valu’s public listing.
The final stake size of 3.95 percent reflects a slight reduction from the originally agreed 4.255 percent, based on the executed option terms.
Executives from EFG Holding and Valu welcomed the development, casting it as a validation of the company’s trajectory and regional significance.
“We are proud to witness Amazon’s decision to acquire a direct stake in Valu, a testament to EFG Holding’s proven ability to build greenfield ventures that evolve into pioneering market leaders,” said Karim Awad, Group CEO of EFG Holding. “This milestone underscores our unwavering commitment to our shareholders, as we continue to create and manage businesses that deliver exceptional value and long-term rewards.”
Valu, which operates under the trademark U Consumer Finance, has evolved into a dominant player in the MENA region’s fintech space. The company is best known for introducing buy-now, pay-later (BNPL) solutions in the region and offers installment plans of up to 60 months across more than 8,500 merchant locations. Its services span sectors including electronics, education, fashion, travel, home improvement, and residential solar energy.
In addition to consumer lending, Valu has expanded into investment products, business-to-business solutions, and financing for high-value purchases through its AZ Valu fund, Sha2labaz, and Ulter platforms. It recently launched a prepaid card and co-branded credit card in partnership with Visa.
“This milestone stands as a powerful testament to the resilience and adaptability of our business model, a model that is versatile, agile, and perpetually evolving to meet the dynamic needs of our diverse client base and partners,” said Walid Hassouna, CEO of Valu. “At Valu, we remain unwavering in our commitment to redefining the customer experience through cutting-edge financial solutions that empower individuals and businesses alike, driving both convenience and opportunity in every interaction.”
Amazon’s move adds to a wave of foreign interest in Egypt’s rapidly expanding non-bank financial services sector. Analysts say the transaction reinforces Egypt’s ambitions to become a regional hub for financial innovation.
“We take immense pride in having played a pivotal role in facilitating Valu’s remarkable journey from securing a strategic investment from Amazon to delivering Valu’s anticipated landmark debut on the EGX,” said Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, which served as the sole financial advisor on the transaction. “These milestones stand as a testament to the power of our advisory expertise in helping companies achieve transformative growth and expansion.”
EFG Holding operates across three core verticals: investment banking via EFG Hermes, non-bank financial institutions under EFG Finance, and commercial banking through Bank NXT. The group operates in seven countries across the Middle East and Africa.
Valu is a leading financial technology provider in the MENA region, offering convenient, comprehensive solutions for individuals and businesses. It pioneered Buy-Now, Pay-Later (BNPL) through flexible plans up to 60 months at over 8,500 partner stores and platforms across categories like electronics, home goods, solar, healthcare, education, travel, and fashion. Valu also provides investment options and instant cash redemption services.
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