MICROCAPITAL BRIEF: Qalaa Holdings Planning to Sell 70% Stake in Microlender Tanmeyah to Egyptian Financial Group (EFG) Hermes for $40m

Qalaa Holdings, an Egypt-based investment holding company previously named Citadel Capital, recently announced that it will sell its 70-percent ownership in Tanmeyah, an Egypt-based provider of microloans and microinsurance, to Egyptian Financial Group (EFG) Hermes, an investment bank serving the Middle East and North Africa (MENA) region. The transaction, which is pending regulatory authorization, values Tanmeyah at EGP 450 million (USD 57 million).

As of December 2015, Tanmeyah reported EGP 509 million (USD 65 million) in loans outstanding to 108,000 borrowers. Tanmeyah does not accept deposits. As of September 2015, Qalaa Holdings reported total assets of EGP 38 billion (USD 4.8 billion) and total equity of EGP 12.3 billion (USD 1.5 billion). As of December 2014, EFG Hermes reported total assets of EGP 75.7 billion (USD 9.7 billion) and total equity of EGP 9.2 billion (USD 1.2 billion).

By Kevin van den Brink, Research Associate

About Tanmeyah

Tanmeyah is an Egyptian financial services provider that focuses on serving low-income individuals and micro- and small enterprises. As of December 2015, Tanmeyah reported EGP 509 million (USD 65 million) in loans outstanding among 108,000 borrowers, 114 branches and approximately 1500 employees in Egypt. Tanmeyah does not accept deposits.

Sources and Additional Resources

[1] Information provided by Africa Practice to MicroCapital

MicroCapital Universe Profile: Tanmeyah

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