Egypt’s Orascom Telecom Media and Technology and new investment bank Act Financial have moved to acquire Beltone Financial as part of plans to diversify into other sectors, including financial services.
Egypt’s Orascom Telecom Media and Technology (LSE:OTMT) and new investment bank Act Financial have moved to acquire Beltone Financial (EGX:BTFH.CA) as part of plans to diversify into other sectors, including financial services.
The Cairo-based telecoms holding said in a statement that the offer would see it acquire 87% of Beltone, also based in the Egyptian capital.
Act, OTMT’s new partner in the financial services sector, would acquire the remaining 13%.
The transaction would be worth an estimated E£650m (US$83m) and is expected to be executed in Q4 this year, OTMT said.
Egyptian billionaire Naguib Sawiris (pictured), the chairman and CEO of OTMT, said the move represented an important step in the company’s “new strategy of shifting from a solely telecom and technology based firm to an investment holding company with a special focus on the financial services sector, the energy sector and the transport and logistics sector among other business lines”.
OTMT holds various TMT investments, mainly in Egypt, North Korea, Pakistan and Lebanon.
Act, founded earlier this year, specialises in securities brokerage, asset management and investment in Africa and the Middle East.
Beltone, established in 2002, has offices in Cairo, Dubai, Doha, Tripoli, Benghazi, London and New York.