A statement from GB Capital’s parent company, Ghabbour Auto, explained that the transaction is still pending GB Auto’s board approval
Abu Dhabi-based investment company, Chimera Investments, is back in the M&A news cycle after acquiring a 45% stake in GB Lease from GB Capital for EGP 855 million. GB capital holds the remaining 55% stake.
A statement from GB Capital’s parent company, Ghabbour Auto, explained that the transaction is still pending GB Auto’s board approval.
GB Lease is GB Auto’s first financing venture, established in 2008 to provide finance to GB Auto’s commercial vehicles and corporate fleet clients. GB Lease provides B2B financial leasing solutions that are non-exclusive to GB Auto.
GB Auto IR head Marina Kamal told Enterprise that the acquisition is expected to close by the end of the year.
Chimera and GB Capital have been in talks since September, with GB Capital considering selling a large stake of its B2B financing solution for around a year now.
Local media outlets, citing inside sources, reported a possible 100% acquisition by the First Abu Dhabi Bank in March; GB Auto soon released an EGX statement refuting the claims, stating that it had not entered definitive agreements on a sale to any party.
Arqaam Capital is acting as the sell-side advisor to GB Capital and Matouk Bassiouny & Hennawy is the sell-side legal advisor, while Adsero-Ragy Soliman and Partners are buy-side counsel.
Chimera acquired a 56% stake in Beltone Financial back in August for around EGP 384.8 million, with Orascom Financial Holding selling off all of its 259.1 million shares.
