Cairo bank EFG to list its buy-now, pay-later unit

Egypt’s EFG Holding will list its buy-now, pay-later subsidiary on the Egyptian stock exchange as part of a restructuring process, the bank has announced.

As part of the restructuring plan, the Cairo-listed investment bank intends to pay its 2024 profit by distributing a 20.5 percent stake in U Consumer Finance, known by its brand name, Valu, to shareholders instead of paying a cash dividend.

Shareholders in EFG Holding will receive shares in U Consumer at book value and will be able to trade them on the Egyptian exchange at market prices after trading commences.

The date of listing on the Egyptian bourse was not disclosed.

EFG Holding will retain a two thirds indirect stake in U Consumer through its subsidiaries. The fair value of the subsidiary has been put at EGP16 billion ($317 million).

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EFG Hermes Promoting and Underwriting has been appointed by EFG Holding and U Consumer as the sole financial advisor and manager of the EGX listing.

U Consumer holds an estimated one quarter of the buy-now, pay-later market in Egypt and has facilitated financing for 7.8 million transactions, CEO Walid Hassouna said.