EFG Hermes advises eFinance on proposed acquisition of Tamweely

The Investment Banking division of EFG Hermes, an EFG Holding company, acted as sole financial adviser to eFinance for Digital and Financial Investments on its proposed full acquisition of Tamweely Financial Services, as per an emailed press release.

The transaction would expand eFinance’s operations beyond digital financial infrastructure into regulated financial services, combining Tamweely’s micro, small, and medium-sized enterprises (MSME) lending platform with eFinance’s technology, data and distribution capabilities.

The acquisition is expected to create opportunities for recurring financial services revenues, embedded finance and data-led lending.

The consideration comprises cash, newly issued eFinance shares and performance-linked earnout consideration. It includes about 146.1 million new eFinance shares, representing around 4% of the enlarged share capital, as well as upfront cash consideration of up to EGP 956.4 million.

The deal highlights the potential for companies listed on the Egyptian Exchange (EGX) to use their shares as acquisition currency while maintaining capital discipline.

Maged El-Ayouti, Co-Head of Investment Banking at EFG Hermes, said: “We are proud to advise eFinance on a transaction that has the potential to shape the next chapter of the Group’s growth story by combining eFinance’s digital infrastructure, data, and distribution capabilities with Tamweely’s regulated lending platform. Importantly, the transaction also demonstrates how the increasing depth and liquidity of Egypt’s capital markets, with average daily EGX trading liquidity now approaching $250-300 million and the rerating of market valuations, are broadening the opportunity set for new IPOs and enabling listed companies to increasingly leverage their equity as an acquisition currency to pursue transformational growth. This transaction marks our fifth M&A advisory that has been signed in the last few months, in addition to closing 16 transactions so far this year, underscoring the accelerating momentum in transaction activity against a complex geopolitical backdrop and EFG Hermes’ position at the forefront of that activity.”

Completion remains subject to customary conditions and approvals, including approval by eFinance’s Extraordinary General Meeting (EGM) and relevant regulatory approvals, including from the Financial Regulatory Authority (FRA). Completion is expected in the second half (H2) of 2026, subject to customary conditions and approvals.