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Key Points
- Beltone Capital plans to acquire a controlling stake in Baobab, expanding its footprint in Africa's growing financial services market.
- The deal aims to leverage AI and data science to drive innovation and transformation in Africa’s financial landscape.
- Beltone Holding reports a 405% revenue surge in Q3 2024, fueling its expansion strategy with a $211 million capital increase.
Beltone Capital, a subsidiary of Beltone Holding led by Egyptian business executive Dalia Khorshid, has strategically moved to strengthen its presence in Africa’s rapidly growing financial services market.
Through a put option agreement, the firm aims to acquire a controlling stake in Baobab, a leading player in the sector, further solidifying Beltone’s commitment to regional expansion and enhancing its footprint in the continent’s burgeoning financial markets.
This acquisition is set to accelerate Beltone’s growth strategy, centered on innovation, as the firm seeks to leverage advanced technologies like data science and AI. With the Baobab deal, Beltone intends to drive transformation in Africa’s financial services landscape, capitalizing on high-growth opportunities in emerging economies.
Transformational deal for Africa’s financial services landscape
Pending regulatory approval and the completion of a binding share purchase agreement, the acquisition will be financed through a shareholder loan, underscoring Beltone’s strong financial position and confidence in the deal’s long-term value.
Group CEO Dalia Khorshid highlighted the strategic importance of the deal, stating, “This acquisition represents a key milestone in our data-driven expansion strategy across Africa and other high-growth markets.” She further emphasized, "We are committed to reshaping financial services in Africa, utilizing Data Science and AI to drive sustainable, scalable growth."
Beltone Holding's financial expansion
Founded in 2002, Beltone Holding is a leading financial services provider in the MENA region, with its shares listed on the Egyptian Exchange. Its subsidiary, Beltone Leasing and Factoring, founded in 2022, has quickly emerged as one of Egypt’s top three financing companies.
Under Khorshid, Beltone has expanded its offerings to include brokerage, investment banking, asset management, and a comprehensive range of non-banking financial services (NBFIs), such as private equity, leasing, factoring, consumer finance, and venture capital.
Beltone’s robust Q3 2024 performance reflects this growth, with a 405 percent year-over-year revenue surge to EGP4.8 billion ($94.3 million) and an impressive 1,218 percent increase in net profits to EGP1.13 billion ($22.2 million). The company’s 23.4 percent profit margin highlights its strong financial health and upward trajectory.
To further fuel its expansion, Beltone has approved a $211 million capital increase, underscoring its commitment to innovation and growth across Africa. The acquisition of Baobab positions Beltone as a rising force in the region’s financial services ecosystem, setting the stage for continued dominance and operational excellence.
