ValU Consumer Finance, a fully owned subsidiary of EFG Hermes Holding, entered into an agreement with Amazon to ease consumer financing in Egypt.
The partnership allows the provision of consumer financing by valU as a payment method on amazon.eg.
valU will offer some of its consumer financing products on amazon.eg through the commercial agreement, enabling eligible customers to split purchases into multiple payments while using the buy now pay later platform.
As part of the agreement, Amazon agreed to acquire $10 million in EFG Hermes GDRs with the option to exchange those investments for valU shares at a later date, which would equate to 4.255 percent of valU’s issued capital, based on a current post-money valuation of $235 million.
Based on the terms and conditions of the transaction agreement, the option will be exercisable prior to or upon the occurrence of a qualified liquidity event at the level of valU, in the form of an independent investment involving third parties, a sale, or an IPO or other listing event.
Meanwhile, earlier this year, First Abu Dhabi Bank withdrew its offer to buy a majority stake in EFG-Hermes, citing global market volatility amid the Ukrainian crisis.
