Ghabbour Auto (GB Auto), an Egyptian automaker led by Raouf Ghabbour, has announced that it is considering selling a 45-percent stake in its leasing division GB Lease to Chimera Investment, an Abu Dhabi-based private investment firm led by Pakistani businessman Syed Basar Shueb.
GB Lease was founded in 2008 as GB Auto’s first financing venture to finance the group’s commercial vehicles and corporate fleet clients.
It offers non-exclusive business-to-business financial leasing solutions to a diverse client base that includes top-tier multinationals, local corporations of various sizes, and small and medium enterprises.
The decision comes after the board of GB Capital, a 99-percent-owned subsidiary of GB Auto, agreed this week at an extraordinary shareholders meeting to negotiate entering into an agreement with Chimera to sell indirectly 45 percent of GB Lease’s shares.
The company stated that it is excited to finalize prospective deals in the coming months that will support its leasing operations and secure a solid pipeline at GB Lease and GB Auto Rental.
Following the negotiations, the transaction will be subject to approval by the Financial Regulatory Authority, the board of directors of GB Auto, and other relevant bodies and institutions.
GB Lease’s revenues increased from EGP123.6 million ($6.4 million) to EGP152.1 million ($7.9 million) in the second quarter of 2022, owing to higher disbursements and portfolio growth, while its half-year revenues remained flat year-on-year at EGP275 million ($14.2 million).
As a result of its strong performance in the first quarter of 2022, GB Capital was able to capitalize on strong demand for its product and services suite to achieve portfolio growth and deliver on multiple operational initiatives.
