EFG : Hermes Concludes Advisory on USD 625 Million Acquisition of 30% of Eastern Company to UAE-Based Global Investment Holding Ltd

The acquisition is one of the flagship M&A deals in the state's privatization program, which aims to attract FDIs and grow the private sector's participation in the economy.

Cairo, November 16, 2023

EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM), announced today that it successfully concluded advisory to UAE investment firm Global Investment Holding Ltd on the USD 625 million transaction, which involves the acquisition of 30% in the Egyptian tobacco giant Eastern Company from Egypt's state-owned Chemical Industries Holding Co. (CIHC) which was approved by the cabinet on the 3rd of September 2023. EFG Hermes acted as the sole financial advisor to Global Investment Holding Ltd in the acquisition.

Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes, commented on the transaction: "We're proud to be part of this landmark transaction, which has far-reaching positive implications for both Eastern Company as well as the broader economy. As one of the largest minority stake sales in Egypt's history and one of the biggest FDI transactions into Egypt in the last several years, this deal reflects continued investors' appetite for acquiring stakes in leading Egyptian corporates, whether these are in defensive sectors or in pursuit of high growth opportunities. The transaction is the latest in a series of successful executions we have completed in the M&A space over the last three years, exceeding USD 6.5 billion in transaction value."

Egypt's largest tobacco product maker and distributor, Eastern Company's product portfolio includes cigarettes, cigars, pipe tobacco, and molasses tobacco, as well as other related products such as cigarettes' filter rods and homogenized tobacco. It has been a pivotal part of Egypt's economic fabric for decades, retaining a consistent market share of 70%.

The deal is one of the major M&As EFG Hermes has advised on which also includes the sale of a 55% stake of Vodafone Egypt to Vodacom for a total consideration of EUR 2.7 billion; the sale of a 60% stake in Egypt's health food company Abu Auf by Emirati food and beverage major Agthia; the 100% indirect stake acquisition in confectionery and healthy foods maker BMB Group by Agthia; the 85.52% stake sale of Egyptian real estate giant SODIC to Aldar Properties in a deal valued at USD 388 million; Abu Dhabi Ports Group' (AD Ports') acquisition of a 70% stake in Egypt's Transmar in a deal valued at USD 140 million; Saudi Arabia's Public Investment Fund's acquisition of a 33.4% stake in consumer electronics and household appliances retailer BTECH for a consideration of USD 150 million; the sale of 100% of Bank Audi Egypt to First Abu Dhabi Bank; as well concluding a USD 530 million deal for Dubai-based Gulf Islamic Investments to acquire a 51% stake in Saudi's Al Meswak Clinics.

EFG Hermes also acted as the sole broker for Global Investment Holding Ltd, executing the transaction.

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About EFG Holding

EFG Holding (EGX: HRHO.CA - LSE: EFGD) is a trailblazing financial institution with an over 40-year track record of success in 11 countries across four continents. Through its three verticals - the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (aiBANK) - the Firm offers markets a holistic portfolio of disruptive financial products and services that serve a growing base of individual clients and businesses of all sizes.

EFG Hermes is the leading investment bank in Frontier and Emerging Markets (FEM), providing a broad spectrum of financial services including advisory, asset management, securities brokerage, research, and private equity. In our home market, we are a universal bank with the fastest-growing NBFI platform that includes microfinance player Tanmeyah, leasing and factoring service provider EFG Corp-Solutions, universal financial technology powerhouse Valu, digital payment platform PayTabs Egypt, Bedaya for mortgage finance, and Kaf for insurance. Additionally, the Firm offers commercial banking solutions through aiBANK, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Singapore

Learn more about us at www.efghldg.com

For further information, please contact:

May El Gammal

Group Chief Marketing & Communications Officer of EFG Holding

melgammal@efg-hermes.com

Omar Salama

Communications Manager of EFG Holding

osalama@efg-hermes.com

The EFG Holding Public Relations Team

PublicRelations@EFG-Hermes.com

Note on Forward-Looking Statements

In this press release, EFG Holding may make forward-looking statements, including, for example, statements about management's expectations, strategic objectives, growth opportunities, and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Holding's belief regarding future events, many of which, by their nature, are inherently uncertain and are beyond management's control and include, among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending, and future legislation, regulations, and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.