EGYPT – B Pharma Holding, the investment vehicle of B Investments, is engaged in serious talks to obtain a significant stake of 49% in EZ International in a deal worth EGP 500 million (US$ 16.18 million).
Earlier this year, B Pharma Holding, El-Ezaby Pharmacies, and the Sovereign Fund of Egypt (TSFE) Healthcare and Pharma Subfund launched a new company, EZ International.
In an official notice, Omar El-Labban, Head of Investor Relations at B Investments, said: “B Pharma Holding will direct its investments to El-Ezaby pharmacies to finance the expected expansions. This move aims to boost the number of pharmacies’ branches during the coming period.”
Operating in collaboration with B Investments Holding, B Pharma Holding is a company committed to investing in the Egyptian pharmaceuticals distribution and trade services sector.
B Pharma Holding plans to pump EGP 500M (US$16.18M) into the capital of EZ International as part of its strategic efforts to support developing companies in the healthcare and pharmaceutical sectors.
El Ezaby Pharmacies will contribute to EZ International with its existing pharmacies and technical expertise in this field.
Upon completion of the acquisition, B Pharma will have a 49% stake in EZ International, which is partly owned by El-Ezaby Pharmacies, and the remaining share will go to businessman Ahmed El-Ezaby.
It contributes to a two-year capital increase plan by TSFE and B Investments to endorse EZ International as a dependable one-stop shop for pharmaceutical companies in Egypt.
Moreover, B Pharma Holding will support EZ International’s mission to provide logistical and administrative services to pharmaceutical institutions as well as aid in drug distribution and trade services.
This proposed deal comes after MM Group for Industry and International Trade acquired a 40% stake in B Investments’ subsidiary B Pharma Holding, which specializes in investing in pharmaceuticals distribution and trade.
The capital of B Pharma Holding amounts to EGP 500 million (US$ 16.18 million), distributed as 60% for B Investments, and 40% for MM Group for Industry and International Trade, which contributed EGP 200 million (US$ 6.47 million) of the platform’s capital.
MM Group for Industry and International Trade is one of Egypt’s largest distribution companies by geographic coverage with access to over 40,000 points of sale.
MTI operates various business lines, including consumer electronics, telecommunication, automotive, and tractors through partnerships with leading global brands including Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier, and Bosch.
The capital injection to B Pharma Holding is MM Group’s first investment in the pharmaceutical industry which continues to attract huge investments in both public and private sectors.
Commenting on the new investment, Khaled Mahmoud, CEO of MM Group, observed: “The healthcare sector and the sector of distributing and trading medicines have seen significant growth in Egypt, and we consider it as a great investment opportunity with our experienced partners in the financial and pharmaceutical sectors.”
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