EFG Hermes Successfully Concludes Advisory on the Demerger of Al Arafa for Investment and Consultancies S.A.E

EFG Hermes, an EFG Holding Company and the leading investment bank in the Middle East and North Africa (MENA), announced today that it concluded advisory on a EFG Hermes Successfully Concludes Advisory on the Demerger of Al Arafa for Investment and Consultancies S.A.E into Concrete Fashion Group for Commercial and Industrial Investments (Concrete) and Gtex for Commercial and Industrial Investments (Gtex).

In a bold strategic move, the recent demerger aimed to carve out the essence of style and industry prowess, housed within Concrete, from the array of strategic investments held by Gtex. This pivotal decision was fueled by a collective vision to sharpen management focus on every facet of the business, empowering both entities to soar to new heights of performance. By fostering specialized management attuned to the distinctive requirements of each entity, the stage is set for a future brimming with innovation and success. Moving forward, each of the two entities will maintain its distinctive and focused management approach, allowing them to pursue separate paths of growth within their respective industries. This strategy aims to maximize shareholder value by capitalizing on the unique dynamics and aspirations of each entity’s growth trajectory.

Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, commented, “We are proud to have played a key role in guiding the strategic demerger of Al Arafa for Investment and Consultancies S.A.E. This transformative decision sets the stage for Concrete and Gtex to focus on their core businesses, igniting operational excellence and unlocking unparalleled shareholder value.”

Dr. Alaa Arafa, Vice Chairman and CEO of Concrete and Gtex, said “We have been working along the impressive team of EFG Hermes to make this happen and we are always proud of our partnership with them – the detailed process and the time frame for execution reflect the commitment of EFG Hermes to deliver a state-of-the-art international investment banking service.”

The transaction is the latest in a series of strategic transactions EFG Hermes’ investment banking division has completed. Most recently the firm successfully concluded advisory on Parkin’s IPO on the DFM, Cenomi Retail’s Sale of a Portfolio of Fashion Brands to Abdullah Al-Othaim Fashion in KSA in addition to Kazyon’s acquisition of Dukan in KSA. In addition, the firm also successfully concluded advisory for Talaat Moustafa Group Holding (TMG) on the placement through a strategic investment via a capital increase by ADQ and ADNEC Group for 40.5% in TMG Holding’s hospitality arm, ICON Group (ICON), to acquire 51% in the portfolio of 7 Historical Hotels for a total consideration of US$800 million. Last year, the Firm closed a total of 28 transactions valued at USD 7.6bn between ECM, DCM, and M&A deals. In 2023, it successfully concluded the successful IPO of ADES Holding Company (ADES) on the Saudi Exchange (Tadawul), as well as Lumi Rental Company’s IPO on the Saudi Exchange (Tadawul), it also successfully concluded the landmark IPOs for ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX). Additionally, EFG Hermes facilitated the listing of OQ Gas Networks on the MSX – the Largest IPO in Oman’s History, Abraj Energy Services on the Muscat Stock Exchange (MSX), as well as the IPO of Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).