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Raya Holding for Financial Investments (RAYA) announced that Intro for Waste Management and Material Recovery Ltd has acquired a 100% stake or 6.5 million shares of its subsidiary BariQ for Techno and Advanced Industries, according to a press release.
The total value of the acquisition transaction amounts to EGP 496 million, including a sum of EGP 491 million for the shares’ purchase in BariQ and a sum of EGP 5 million for the purchase of a 7,500-square meter land plot owned by Tadweer, a subsidiary of Raya Holding.
Al Ahly Pharos Investment Banking acted as the financial advisor on the transaction for Raya Holding, while Zaki Hashem and Partners acted as the legal advisor, with Al Ahly Pharos Brokerage acting as the broker.
Meanwhile, Compass Capital acted as the financial advisor and investment bank for the buyer, with Al Tamimi and Co (ATCO) acting as the legal advisor.
Additionally, RSM acted as the financial and tax due diligence advisor for Intro, while Corporate Leasing Company Egypt (Corplease) was the acquisition financier.
Beltone Brokerage Co was the transaction broker for the buyer, while the Commercial International Bank Egypt (CIB) acted as the escrow agent for the transaction.
The transaction also included an additional permitted leakage and debt waiver of EGP 75 million as consideration, bringing the total value of the transaction to EGP 571 million.
Raya’s exit value results in an internal rate of return (IRR) of about 36% since BariQ’s inception.
“Exiting the recycling industry came as part of Raya Holding’s investment strategy of monetizing non-core assets, and we are proud to have taken a strategic role in such pivotal sector in the Egyptian economy,” CEO of Raya Holding Ahmed Khalil commented.
“We wish Intro and BariQ teams a prolonged success in growing Egypt’s sustainable and circular economy further. We take pride that Raya continues to embark upon successful ventures, and hand-it over to new phases in its business cycle,” Khalil added.
In April 2021, Raya Holding signed a share purchase agreement (SPA) with Intro for Waste Management regarding the sale of 100% of the shares of BariQ.
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