B Investments Holding [BINV]: Exits Kick Off, Unlocking Value
Diversified high-yielding investments
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B Investments Holding [BINV]
Egypt / Non-Banking Financials / Core Coverage Report
12M PT EGP17.9 (+22%)
set on 18 May 2021
Investment Rating: Overweight | Risk Rating: Medium
Key Insights
Unlocking hidden value
B Investments [BINV] is a private equity outfit with diversified investments, providing exposure to sectors that are not represented on the Egyptian Exchange (EGX). Since it was listed on EGX in 2018, BINV has made few acquisitions, including Gourmet Egypt, Ebtikar’s Masary, and Tamweel. No exits have taken place until BINV’s management decided to unlock value in one of its gems, divesting 20% of its stake in Total Egypt in late 2020 in an exit worth 5x its initial investment, followed by a full exit from its stake in BEARD, albeit a small transaction.
Blossoming
BINV announced it is planning to float Ebtikar’s e-payment companies on EGX during H2 2021, which means other prosperous divestments could be underway. Based on how the market is currently reacting to fintech players, partially exiting Ebtikar as scheduled would be well timed. Once completed, this transaction would be followed by potential acquisitions by BINV.
Eyes on the big fish
One cannot look at BINV’s portfolio and miss out on Madinet Nasr for Housing & Development [MNHD]. Though BINV’s holding is only 7.5%, BINV has management control in MNHD which has a huge land bank it started monetizing recently following the execution of a new strategy. We see MNHD as one of the most lucrative investments under BINV’s portfolio.
For the full report, please click here.
Sherif El Etr
Equity Analyst
T +202 3300 5720