EFG Hermes, a leading investment bank in the Middle East and North Africa and part of EFG Holding Company, has concluded its advisory role in the demerger of Al Arafa for Investment and Consultancies S.A.E. The demerger resulted in the formation of two distinct companies: Concrete Fashion Group for Commercial and Industrial Investments (Concrete) and GTEX for Commercial and Industrial Investments.
The strategic demerger was designed to separate Concrete’s fashion and industrial expertise from GTEX’s diverse strategic investments. This move is expected to enhance management focus and drive performance to new heights by aligning specialized management with the unique needs of each company, paving the way for innovation and success.
As a result of the demerger, both Concrete and GTEX will benefit from a tailored management approach, enabling them to independently pursue growth in their respective sectors. The strategy is intended to optimize shareholder value by leveraging the distinct market dynamics and growth potential of each company.
Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, stated: “We are honored to have facilitated the strategic demerger of Al Arafa for Investment and Consultancies S.A.E, empowering Concrete and GTEX to concentrate on their primary business areas, thereby enhancing operational efficiency and maximizing shareholder value.”
Alaa Arafa, Vice Chairperson and CEO of both Concrete and GTEX, remarked: “Our collaboration with EFG Hermes’ exceptional team has been instrumental in this process. Their commitment to excellence is evident in the meticulous planning and timely execution of this demerger, reflecting EFG Hermes’ dedication to providing top-tier international investment banking services.”
