EFG Holding announced today that its board of directors has passed several resolutions regarding the listing of U Consumer Finance S.A.E., known by its brand name Valu, on the Egyptian Exchange (EGX).
The board of directors decided to restructure Valu so that EFG Holding owns 20.488 percent of its capital directly. EFG Holding’s board also decided to convene an ordinary general assembly to discuss the distribution of a portion of the distributable profits as per the financial statements for the fiscal year ending December 31, 2024. This distribution will be made to shareholders in the form of shares in Valu instead of cash dividends.
“The restructuring process underscores our unwavering commitment to our shareholders and our ambition to enhance value through innovative strategies. This pivotal step is designed to maximize returns for our investors while fostering the sustainable growth of Valu, which is poised to emerge as an independent, listed entity with EFG Holding retaining a majority stake,” stated Karim Awad, group CEO of EFG Holding.
EFG Holding to retain 67 percent indirect stake in Valu
Following the completion of the restructuring, distribution and trading procedures, EFG Holding will retain at least a 67 percent indirect stake in Valu through its subsidiaries.
“By distributing part of Valu’s shares, we are establishing a new and innovative standard for offering shares in subsidiaries, enhancing liquidity, and expanding our investor base,” added Awad.
EFG Holding’s board was presented with the fair value report for Valu’s share price, prepared by the independent financial advisor, Keys Financial Consulting S.A.E. (BDO). This report, approved by Valu’s general assembly, established the fair value of Valu at EGP15.586 billion.
Valu’s shares will be traded, and the opening price and price limits for the inaugural trading session will be determined based on the mechanisms implemented by the Egyptian Exchange. These procedures represent a new and innovative legal framework proposed by EFG Holding, which has received provisional approval from the FRA in an unprecedented move, leveraging the mechanism of dividend distributions by listed companies and the activities of their subsidiaries to broaden the ownership base and facilitate listing and trading on the stock exchange.
Read: EFG Holding posts record revenue of $482 million with strong growth across verticals
Fintech license to support growth
“Our vision is to create a future where financial inclusion is a universal reality, accessible to everyone—not just a privileged few. Valu proudly embraces this innovative listing, which signifies a pivotal moment in our journey. The name Valu has become synonymous with the “Buy-Now, Pay-Later” model in Egypt, reflecting our role as a powerful force in the fintech sector and establishing our brand as a hallmark of accessible financial solutions,” stated Walid Hassouna, CEO of Valu.
Valu has recently secured a fintech license from the Financial Regulatory Authority (FRA), enabling it to deliver a comprehensive end-to-end digital customer journey. This milestone underscores Valu’s steadfast commitment to introducing innovative solutions in the market. With this license, Valu is positioned to revolutionize how Egyptians engage with financial services.
The company will provide seamless electronic verification, digital contracts, and secure digital record-keeping, all of which will significantly enhance the customer experience. These advancements will foster greater financial inclusion, offering a faster, safer, and more streamlined digital experience that empowers individuals and businesses to access financial services effortlessly from anywhere.
