EFG Hermes has signed a definitive sale and purchase agreement (SPA) to acquire a 100% stake in Primera Africa Finance Group, a top-ranked brokerage house in Nigeria.
The transaction’s value is less than 10% of total shareholders’ rights in accordance to the listing rules on the Egyptian Exchange (EGX), the leading financial services company said in a filing to the EGX on Thursday.
The Egyptian company has entered the agreement shortly after getting the Financial Conduct Authority’s (FCA) approval to operate in the UK, EFG Hermes indicated.
This step came within the framework of the Cairo-based firm’s expansion strategy to enter the frontier and emerging markets (FEM) directly, according to the filing.
The EGX-listed company is looking to widen business in West Africa through its new office in Nigeria as its Kenya-based office serves markets of East Africa.
The new office will serve all clients looking for investment opportunities in the FEM, mainly the Nigerian market, one the largest economies in Africa.
“Nigeria is our fourth direct entry as we continue our strategy of expanding our geographic footprint in high-potential, frontier emerging markets,” CEO of EFG Hermes Karim Awad said.
“At the close of this transaction, we will have a direct presence in 12 jurisdictions on four continents to serve our global institutional investors, regional high-net-worth individuals, and local retail investors,” he noted.
EFG Hermes previously reported a 26% year-on-year drop in consolidated profits for the first quarter of 2018, recording EGP 268.4 million from EGP 362.79 million.