Beltone Financial considers applying for a digital bank licence, within its plan to expand its package of non-banking financial activities, Daily News Egypt understands.
However, the company said in a Tuesday statement to the EGX, that “it did not take any steps in this regard.” It added that once steps are taken they will be announced.
Sources close to the situation revealed that the renowned investment bank is in the process of acquiring Cash for Microfinance company, after signing a memorandum of understanding (MoU) to start the due diligence process.
Beltone announced on Monday that it had signed the MoU with a company licensed to engage in microfinance activity without disclosing the name of that company. The due diligence will be carried out soon after the binding regulatory approvals are obtained, in preparation for completing the acquisition process, whether directly through Beltone or through one of its subsidiaries.
The sources told Daily News Egypt that the step comes within the framework of completing all non-banking financial activities, as it also obtained the approval of the Financial Regulatory Authority (FRA) to add factoring activity through its financial leasing arm.
The sources emphasized that the company aims to penetrate the microfinance sector by acquiring Cash Microfinance, which has been operating in the Egyptian market since 2020. The company is also focusing on providing its services in Upper Egypt in particular.
The sources pointed out that completing the acquisition of the target company depends on the results of the due diligence process, which could take up to two months.
In a statement issued last week, the company stated that it had completed the legal procedures in accordance with the law and the rules regulating the registration of shares to increase its issued and fully paid capital in cash. This makes the issued and paid up capital reach 10.92 billion shares distributed over 5.46 billion shares.
The company offers an integrated set of financial solutions and services, which include securities brokerage, promotion services and underwriting coverage, as well as asset management, research, and direct investment, in addition to non-bank financing services that include financial leasing, discounting, consumer financing, risk capital, and microfinance.
The company has an ambitious vision that aims to create a boom in the financial sector in the region, based on the global experience and knowledge of the members of the work team, and provide innovative value-added solutions to create more opportunities for customers, enhance the market value, and achieve results with a positive impact.
