Baker McKenzie: EFG Hermes and valU in two transactions in KSA and Egypt 

Baker McKenzie has advised EFG Hermes and its buy-now-pay-later (BNPL) fintech platform, valU for consumer finance (valU), on two planned strategic ttransactions. 

The first of which is the acquisition by valU of a stake in a new Saudi consumer finance player, FAS Finance, and its joint venture arrangements with FAS Labs Holding, owned by Fawaz Abdulaziz Alhokair & Co (Alhokiar) and Arabian Centres Company (ACC).The deal marks a key milestone for valU, giving it access to a network of thousands of retail stores and mono-brand websites in Saudi Arabia, one of the significant markets in the region; and 

The second is an investment by members of Alhokair family in a minority stake in valU. The deal reflects a high level of interest in Egypt’s non-banking financial institutions (NBFI) sector and fortifies valU’s position as an innovator and provider of financial inclusion solutions in the market. 

Baker McKenzie’s cross-border team advising on this transaction was led by partner Hani Nassef (corporate and m&a, Cairo, pictured left) and senior associate Ingy El Kady (corporate and m&a, Cairo, pictured right). Partners Mohamed Barakat (corporate and m&a, Cairo), Nasser B. Alfaraj (corporate & securities, Bahrain) and Zahi Younes (corporate & securities, Riyadh) advised on the KSA law aspects of the transaction with support from senior associate Tamim AlKhudhayri (corporate & securities, Riyadh), associate Yousef Bugaighis (corporate & securities, Riyadh), and trainee associate Mohammed AlMudimigh (corporate & securities, Riyadh). Anti-trust advise was provided by partner David Monnier (competition, Riyadh). 

The transactions remain subject to customary regulatory approvals.