Rolaco EGB Investment, a subsidiary of Rolaco Trading and Contracting based in Saudi Arabia, has acquired an additional 1.46 million shares in MM Group, a Cairo-based distributor of automobiles and consumer electronics led by Egyptian businessman Khaled Mahmoud.
The firm has recently accelerated its acquisition strategy to diversify its portfolio and boost earnings, and as part of this initiative, it has purchased an additional stake in the group.
According to data tracked by Billionaires.Africa, the renowned investment firm boosted its stake in MM Group by acquiring an additional 1.46 million shares at an average price of EGP5.07 ($0.167) per share.
This strategic move cost the firm EGP7.45 million ($247,000) and elevated its holding in MM Group to 15.02 percent, up from 14.87 percent. It also solidified Rolaco‘s position as a leading shareholder in the Cairo-based automobile and consumer electronics distributor.
MM Group, known for its diverse portfolio, comprises five divisions — automotive, consumer electronics, seamless pipes, telecom, and tractors — and operates Egypt’s largest distribution network.
With a customer base that comprises globally renowned brands such as Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier, Bosch, and most recently Apple, MM Group has established itself as a major player in the industry.
Under the visionary leadership of Mahmoud, the chairman and managing director of MM Group, and the guidance of other members of his family, the company has successfully expanded its distribution network to cover over 40,000 points of sale across the country, leveraging its long-standing distribution platform that encompasses both distribution and retail channels.
Despite becoming a non-exclusive authorized distributor of Apple products in Egypt in 2022, the group was unable to match or exceed the financial performance achieved in the corresponding period of the previous year.
Its profits at the end of the first three-quarters of its 2022 fiscal period fell by more than 34 percent, from EGP328 million ($13.4 million) in the first nine months of 2021 to EGP216 million ($8.84 million).
