Egyptian banker Karim Awad's EFG Hermes advises ‘Budget Saudi’ on $121-million acquisition

Timilehin Adejumobi -

Key Points

  • EFG Hermes advised Budget Saudi on acquiring AutoWorld for $121 million, marking another milestone in their MENA region advisory success.
  • The acquisition involved a share swap, issuing 7 million new shares valued at $17.3 each to SEDCO Holding and other institutional investors.
  • EFG Hermes reported a net profit of $52.24 million in 2023, with record revenues of $307.6 million, marking a 34-percent year-on-year increase.

EFG Hermes Holding, a leading financial services group in the MENA region led by Egyptian banker Karim Awad, successfully advised United International Transportation Company (Budget Saudi) on its acquisition of Al-Jazira Equipment (AutoWorld) for $121 million.

The transaction, executed via Budget Saudi’s subsidiary, Al Jozoor Al Rasekha Trucking Company (Rahaal), involved a share swap issuing 7 million new shares to seller SEDCO Holding and other institutional investors, with each share valued at SAR 65 ($17.3).

EFG Hermes enhances M&A advisory credentials

Karim Meleka, Co-Head of EFG Hermes’ Investment Banking division, highlighted the acquisition’s impact on Saudi Arabia’s mobility solutions sector. “The combined entity will be a powerhouse in the industry, driving innovation and efficiency,” Meleka said. “By unlocking synergies and optimizing operations, Budget Saudi and AutoWorld can enhance service offerings for corporate clients.”

EFG Hermes has a notable history of advising on significant M&A transactions in the Gulf Cooperation Council (GCC) region. Recent deals include advising Cenomi Retail on the sale of select brands to Abdullah Al-Othaim Fashion Company and assisting MENA discount retailer Kazyon in acquiring a 50-percent stake in Dukan earlier this year.

Robust financial performance under Karim Awad’s leadership

Under the leadership of Egyptian banker Karim Awad, EFG Hermes has continued to expand its dominance in securities brokerage, asset management, investment banking, private equity, and research across multiple regions.

The group reported a net profit after tax and minority interest of EGP2.5 billion ($52.24 million) for the full year of 2023, with record revenues of EGP14.7 billion ($307.57 million), a 34-percent year-on-year increase. As of December 2023, EFG Hermes’ total assets stood at EGP121.9 billion ($2.55 billion).

Further solidifying its financial strength, EFG Hermes issued EGP600 million ($12.54 million) in senior unsecured short-term notes for its subsidiary, Hermes Securities Brokerage Company. This marks the fifth issuance by EFG Hermes and the second within a pre-approved EGP2 billion ($41.8 million) program.