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The Egyptian Ghabbour family, the majority owners of Ghabbour Auto (GB Auto), a leading automaker in Egypt, have announced that they have signed a definitive agreement with Chimera Investment, a private investment firm based in Abu Dhabi, to sell a 45-percent stake in their leasing business, GB Lease, for EGP855 million ($35 million).
The transaction is subject to approval by the Financial Regulatory Authority, the board of directors of GB Auto, and other relevant bodies and institutions. GB Auto and GB Lease are excited to finalize prospective deals in the coming months that will support their leasing operations and secure a solid pipeline.
The recent move comes after GB Auto announced in the past that it was considering selling a 45-percent stake in GB Lease to Chimera Investment. The move is part of a larger agreement that saw Chimera pick up a 21.7-percent stake in the Netherlands-based payments company MNT Investments, with the remaining 14.2 percent being sold by other unnamed investors.
GB Auto’s unit, GB Capital, will retain the remaining 55-percent stake in the company, which has been valued at EGP 1.9 billion ($77 million) as part of the deal.
The Ghabbour family is well-known in the Egyptian business community, with the late Raouf Ghabbour being a prominent auto tycoon in the country. GB Auto has been a leader in the automotive industry in Egypt, and the sale of a stake in its leasing division is a strategic move for the company.
GB Lease was founded in 2008 as GB Auto’s first financing venture, providing financial leasing solutions for commercial vehicles and corporate fleet clients. It offers business-to-business financial leasing solutions to a diverse client base, including multinationals, local corporations of various sizes, and small and medium enterprises.
In the second quarter of 2022, GB Lease’s revenues increased from EGP123.6 million ($6.4 million) to EGP152.1 million ($7.9 million) due to higher disbursements and portfolio growth, while its half-year revenues remained flat year-on-year at EGP275 million ($14.2 million).
Chimera Investment is a private investment firm based in Abu Dhabi and led by Pakistani businessman Syed Basar Shueb. It is part of Abu Dhabi’s Royal Group, a diversified conglomerate comprising over 60 entities and employing 20,000 employees.
The group has a presence in various industries, including real estate, construction, fast-moving consumer goods, food and beverage, hospitality, aviation, healthcare, and general investments.
