- Egyptian Bank to Buy Nigerian Firm, Primera Africa
An Egyptian investment bank, EFG Hermes Holding, said it had signed sale and purchase agreements to acquire Primera Africa, a Nigerian brokerage and research house, as it pushes to expand its capital market business across frontier markets.
EFG Hermes said in a statement on Thursday that it would utilise its presence in Nigeria to serve both global and domestic investor appetite for opportunities in Africa’s largest economy.
The bank expects to complete the acquisition of Primera Africa by August 31, 2018, subject to regulatory approval and the satisfaction of certain conditions precedent.
It said upon completion of the acquisition, Primera Africa would operate under EFG Hermes’ brand name, bringing to the Nigerian market a track record that had spanned more than 30 years of offering financial services, research, and a large network of investors seeking compelling opportunities in high-growth markets.
The Group Chief Executive Officer, EFG Hermes Holding, Karim Awad, said, “Nigeria is our fourth direct entry as we continue our strategy of expanding our geographic footprint in high-potential, frontier emerging markets.
“At the close of this transaction, we will have a direct presence in 12 jurisdictions on four continents to serve our global institutional investors, regional high-net-worth individuals, and local retail investors.”
The London-based Chief Executive Officer, EFG Hermes Frontier, Ali Khalpey, described Nigeria as “a market that has a compelling story to tell investors.”
He said, “It is not just one of the largest and most economically diverse frontier markets globally, it is a growth story that has years to run after series of structural reforms and a devaluation of the national currency. With oil prices now recovering, with significant portfolio inflows, and with the demonstrated ability to tap global debt markets, Nigeria will benefit from broad currency stability, we expect while remaining attractive in valuation terms at the same time.”