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Raya Holding for Financial Investments, a Cairo-based investment conglomerate owned by Egyptian tycoon Medhat Khalil, has agreed to sell a 62.3-percent majority stake in its subsidiary, Ostool Transport, to Paradigm Logistics, a U.S. logistics and transport management company.
In accordance with the deal, the Cairo-based investment conglomerate will sell 53.95 million shares, representing a total 62.3-percent stake in Ostool Transport, for EGP266.55 million ($14.31 million) in cash, or EGP4.94 ($0.265) per share.
The move is part of Raya Holding’s strategic efforts to expand its operations with a core focus on the financial technology sector, while reducing costs from operations in highly competitive industries, as outlined in its strategic expansion roadmap.
Raya Holding announced plans to launch a new e-payment company nearly three months ago after its board authorized its non-banking financial services technology and e-payment holding business, Aman, to begin the process of establishing the new firm.
Through the new e-payment firm, which will be formed in collaboration with TAQA Arabia, a subsidiary of Qalaa Holdings, Raya Holdings will be able to capitalize on the region’s rapid use of the Internet and e-commerce.
Raya Holding has grown into a leading brand in Egypt since its formation in 1999 from entities owned by Khalil, with its broad-based operations generating a net profit of EGP541.4 million ($34.5 million) in 2021, compared to a net loss of EGP45.7 million ($2.9 million) in 2020.
The strong profit recovery from the previous deficit was aided by a 56.7-percent increase in sales from EGP10.75 billion ($684.3 million) in 2020 to EGP16.85 billion ($1.07 billion) by the end of 2021.
In the first quarter of 2022, its profit increased by 49.6 percent to EGP53.58 million ($2.9 million), compared to EGP35.80 million ($1.92 million) in the same period of 2021, thanks to a 10.9-percent surge in revenue from EGP4.03 billion ($216.3 million) to EGP4.47 billion ($240 million).
