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Beltone Financial
CREDENTIALS August 2011
Leading Transformation
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Our Vision
Enriching individual, corporate and community wealth by engaging in transformational relationships
CULTURESYNERGY
TRANSFORMATION
Beltone
Clients
Community
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Beltone is a catalyst in the MENA region, innovatively leveraging synergies to benefit stakeholders
Our Mission
INNOVATION
Beltone
Clients
Community
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Beltone’s culture is the source of empowerment that drives transformation in our clients and the financial community we serve
Our Values
Community
CULTURE
Beltone
Clients Community
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•To provide clients with the very best service at every level of Beltone’s operations
•To continue to create
•To provide clients with seamless execution
Our Pledge
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Our Office Locations
Beltone offices
• Cairo• Dubai• New York• Doha
• Tripoli• Benghazi• London*
* Under establishment
With our network of offices we link clients from every corner of the world to every market in MENA
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Our Company
BeltoneInvestment Banking
HQ Cairo
BeltoneAsset Management
HQ Cairo
Beltone Fixed Income
HQ Cairo
Beltone Private Equity*
HQ Cairo
Beltone Securities Brokerage
HQ Cairo
BeltoneSecurities Holding
HQ Cairo
BeltoneFund Administration
CompanyHQ Cairo
BeltoneFinancial Emirates
Dubai
BeltoneFinancial Qatar
Doha
BeltoneFinancial Libya
TripoliBenghazi
Beltone Enclave USA
New York
BELTONE FINANCIAL HOLDING
* Affiliate of Beltone Financial Holding
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Our Business
ASSET MANAGEMENT
• Fastest growing AUM in Egypt
21.7bn E£ under management
More than
INVESTMENT BANKING
• Unique MENA focus for advisory and capital raising
55bn E£ in transactions
More than
BROKERAGE
• Multiple MENA markets access• MiFID compliant institutional offering
Rank #2In trading Q1 2011
In Egypt
PRIVATE EQUITY
• Invests in attractive industries with capable management characterized by a sustainable competitive advantage
2.1bn E£ in asset value
More than
RESEARCH
• Expert regional knowledge• Expanding coverage of companies and key
industry sectors across MENA
Over 58 companies
Research covering
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Growth | Milestones and Achievements
2002Vision
• Brought together financial professionals in Egypt and Saudi Arabia who believe in a culture of ownership
2003 - 2004Innovation
• Introduced first Money Market accounts, Corporate Pension plan
• Assets Under Management exceeded E£ 1.5 billion
• Investment Banking completes first transaction
• Beltone Research established
• Brokerage moved to Beltone HQ
• Banking licence approved in KSA
• Research expands through MENA
• Private Equity capitalized with E£ 1.5 billion for investment in promising synergies
• Assets Under Management reached E£ 8 billion
• Beltone acquired 40% of Trust Group for Securities in Egypt
2005Consolidation
2007Stature
• Beltone Asset Management launches its MENA Fund
• Office opened in New York promoting MENA investment
• Assets under Management exceeds E£ 27 billion
• Investment Banking executes 23rd transaction
• Assets under Management exceeds E£ 14 billion
• Custody office approved by CMA
• Research expanded to cover 30 companies
2006 Growth
Investment banking growth 2004 to dateE£ million
2004 400
8002005
2,6002006
4,0002007
20,8002008
23,8972009
2008Maturity
•Beltone acquires Obelisk brokerage
•Beltone Asset Management launches another equity fund sponsored by Suez Canal Bank
•Beltone Brokerage ranks no.1 in Egypt for the first half of 2008
•Beltone Private Equity setup US$150 million Midcap fund
•Office opened in Qatar
•Office opened in Libya
2009Expansion
•Beltone Asset Management launches Money Market Fund with ABC, HSBC and Banque Du Caire
•Beltone Asset Management launches Periodical return fund with Misr El Kheir
•Beltone Brokerage ranks no.1 in Egypt for 2009
2010•Beltone Asset Management launches
Money Market Fund with Arab Bank
•Beltone Asset Management launches “Insight Fund”, a technically driven Egypt Equity Fund
•Beltone Asset Management launches a balanced fund with NSGB
Beltone Employees 2003 to date
2007 185
2008 292
2009
2010
293
310
2006 145
2005 75
2004 46
2003 3
AUM 2003 to dateE£ million
8,0002005
14,4002006
21,1002008
26,100
22,722
2009
2010
27,7002007
1,5002004
2003 300
3,1302010 2011 29121,6742011
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Investment Banking
• Unparalleled MENA market expertise
• Financial advisory and capital-raising services
• Scrupulous state-of-the-art investment banking practices
• Expertise advising and supporting family groups in strategic transformation
• Assisting clients on cross-border initiatives: International players seeking opportunities in MENA or MENA-based companies looking for international expansion or funding
Investment Banking growth 2004 - 2010Transaction volumes in E£ billion
E£ 55.5 billion in 42 transactions closed over the past six years
M&A transactions
• Mergers
• Acquisitions
• Divestitures
• Corporate restructuring
• Leveraged buyouts
Capital and debt-raising transactions
• Initial Public Offerings
• Private placements
• Debt-structuring
2004 0.4
0.82005
2.62006
4.02007
20.8
23.9
3.1
2008
2009
2010
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Investment Banking | Landmark Transactions
Initial Public Offering of Amer Group
The global offering of Amer Group, a leading real estate developer in Egypt. Beltone, as the Sole Global Coordinator and Bookrunner, advised the business on a complete corporate and organizational restructuring culminating in raising USD 200 million in expansion capital and secondary share sales.Beltone succeeded in attracting significant western institutional demand for the offering, demonstrating strong placement capabilities with international investors.
1,150m E£ Initial Public Offering
EAgrium merger with MOPCOOrascom Development Holding AG
4.1bn EGP Merger
16.7bn E£ Acquisition
Beltone acted as the sole financial advisor to EAgrium in its USD 2.5 billion merger with Misr Oil Processing Company (MOPCO). Throughout the process, Beltone served numerous advisory roles. Beltone carried out a relative valuation for both entities, advised EAgrium throughout the negotiations with MOPCO with respect to the valuation and deal structure, and finally executed the transaction in a timely manner. Beltone also advised the merged entity on a USD 120 million bridge debt-financing
E£ 16.7 bn tender offer by Orascom Development Holding AG resulting in 98% acquisition of Orascom Hotels & Development via a share swap with a cash option. Beltone acted as the sole financial advisor for the company in the tender offer in the largest tender offer in Egypt with around 98% of shareholder opting for the swap thus reducing the financing burden on the company
ENPC
5.8bn E£ Project Financing
Beltone jointly advised ENPC, a fully owned entity by Misr Fertilizer Production Company, on the project finance syndicated facility of USD 1.1 billion for the construction and operation of 2 urea/ammonia production trains. It is considered to be the largest transaction to be fully underwritten by local Egyptian banks. Signing of the loan agreement and drawdown occurred in Dec.09
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Investment Banking | Landmark Transactions
National Drilling Company
403m E£ Share sale
E£ 403 million sale of National Drilling Company, an Egyptian drilling company with operations in Libya, to Al Safat Investment. Beltone represented the selling shareholders in divesting 60% of the business
Amwal Arabia and Arabia Cotton & Ginning Company
734m E£ share swap
E£ 734 million share swap between Amwal Arabia and Arabia Cotton & Ginning Company. Beltone engineered a complex capital markets solution to the shareholders of both companies, which created the leading integrated textiles player in the Middle East
& Ginning Company& Ginning Company
Initial Public Offering of GB Auto
1.27bn E£ Capital Increase
The global offering of GB Auto, the leading automotive player in the Middle East. Beltone advised the family business on a complete corporate and organizational restructuring culminating in raising E£ 1.27 billion in expansion capital in 2007’s most successful IPO in Egypt
Bond Offering of GB Auto
1.0bn E£ Bond Offering
The bond offering of GB Auto, the leading automotive player in the Middle East. Beltone advised the publicly listed company on the issuance and listing of an EGP 1.0 billion non-convertible bond
GB Auto Joint Venture with Al-Kasid Group
440m E£ Investment
E£ 440 million investment in a joint venture with Al-Kasid Group, Hyundai Motor Company’s agent in Iraq. The 50-50 joint venture will act as a vehicle for importing and distributing Hyundai cars and spare parts in Iraq as well as building Iraq’s leading after-sales service franchise.
Orascom Development Holding AG
969m E£ capital increase
CHF 190 million initial public offering for Orascom Development Holding AG. Beltone is the first Egyptian company to co-manage a global public offering for a European based company, Beltone also was the sole listing advisor for the company in Egypt
Abraaj Capital/Al Borg Laboraties
778m E£ Acquisition
Abraaj Capital Ltd acquired Cairo Medical Tower Laboratory S.A.E (Al Borg Laboratories) for a total consideration of EGP 778 million. Beltone counseled Abraaj on a strategy to pre-empt a rival bid and executed in a notably short time period
Samcrete Egypt
4.1bn E£ Acquisition
Beltone advised on the sale of 99.6% of Samcrete Egypt Contractors & Engineers to Samcrete for Engineering Investments through a share swap for a total consideration of E£ 4.1 bn
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Investment Banking | Corporate Clients
Modern Nile Cotton
Saudi Arabian Insurance Co
Weather Investments
Arab Cotton Ginning
Al-Ahlia Cooperative Insurance
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E£ 14,052,600,000(USD 2,532,000,000)
EAgrium’s merger with MOPCO
Exclusive Financial Advisor
January 2009
E£ 4,069,656,000(USD 735,372,795)
Merger with Samcrete for Engineering Investments
Sole Financial Advisor
December 2009
E£ 5,775,000,000(USD 1,050,000,000)
ENPC ProjectFinancing
Financial Advisor
December 2009
E£ 440,000,000(USD 80,000,000)
Joint venture between GB AUTO and Al-Kasid Group
of Companies
Exclusive Financial Advisor
February 2010
E£ 1,000,000,000(USD 181,818,182)
Bond Offering
Financial Advisor
May 2010
E£ 222,580,449(USD 38,709,643)Acquisition of 50% of Kandil Glass by North
Africa Holding Company
Financial Advisor
November 2010
E£ 312,000,000(USD 56,727,273)
Capital Raising
Exclusive Financial Advisor
May 2010
E£ 1,150,000,000(USD 200,000,000)
Initial Public Offering
Sole Global Coordinator and Bookrunner
November 2010
Investment BankingFinancing Transactions | M&A and Corporate Advisory
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Investment BankingFinancing Transactions | M&A and Corporate Advisory
E£ 734,242,283(USD 131,036,539)Acquisition of Amwal al Arabia by Arab Cotton Ginning via share swap
Exclusive Financial Advisor
October 2007
E£ 308,000,000(USD 56,850,640)
Capital Raising
Sole Financial Advisor
March 2008
E£ 778,299,525(USD 143,978,364)
Acquisition of 76.9% of Cairo Medical Tower Laboratory
(Al Borg Laboratories)Via a tender offer
Sole Financial Advisor
May 2008
E£ 16,725,103,579(USD 3,093,992,711)
Acquisition of 98.1% of Orascom Hotels and
Development via a tender offer
Sole Financial Advisor
May 2008
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E£ 969,000,000(CHF 190,000,000)
Global Public Offering and dual listing in Egypt and
Switzerland
Co-Manager on the offering and sole listing advisor in Egypt
May 2008
EGP 402,704,224(USD 74,640,927)
Sale of 60% of National Drilling Company to Al
Safat Investment
Exclusive Financial Advisor
June 2008
E£ 371,000,000(USD 70,000,000)
Joint venture between GB AUTO and Marco Polo
Exclusive Financial Advisor
June 2008
E£ 671,132,400(USD 120,000,000)
ENPC Bridge Finance
Financial Advisor
January 2009
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E£ 1,350,000,000(USD 232,161,006)Structuring and capital raising for a Greenfield
sugar manufacturing plant
Exclusive Financial Advisor
December 2006
E£ 387,464,000(USD 66,829,602)Sale of Sprea Misr and
Plastichem to IFI, a subsidiary of EK Holding
Exclusive Financial Advisor
March 2007
E£ 210,000,000(USD 36,220,698)
GB Auto’s acquisition of a 49% stake in CITI
Exclusive Financial Advisor
March 2007
Value Not DisclosedEl Nasr Clothing (Kabo) acquisition of Wave for Trading and Agencies
Exclusive Financial Advisor
April 2007
E£ 103,000,000(USD 17,798,514)Pre-IPO financing via
convertible loan
Exclusive Financial Advisor
May 2007
E£ 1,270,870,293(USD 221,284,923)Initial Public Offering
Global Coordinator, Lead Manager and Sole Bookrunner
July 2007
Investment BankingFinancing Transactions | M&A and Corporate Advisory
E£ 278,619,625(USD 49,723,848)
Acquisition of 28.9% of Semiramis Hotels via a
tender offer
Sole Financial Advisor
October 2007
Rolaco Hotels
E£ 150,000,000(USD 26,769,748)Acquisition of Cougar Capital Management
Exclusive Financial Advisor
October 2007
R. Ghabbour
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E£ 340,000,000(USD 58,262,476)Initial Public Offering
Lead Manager and Sole Bookrunner
May 2005
E£ 90,000,000(USD 15,495,201)The sale of Enjoy to a
strategic investor
Exclusive Financial Advisor
October 2005
E£ 44,426,466(USD 7,665,022)
Modern Nile Cotton bid for El Nasr Clothing and
Textiles (KABO)
Exclusive Financial Advisor
September 2005
E£ 350,000,000(USD 60,242,415)
Placement of equity piece in Weather Investment’s
acquisition of Wind
Lead Placement Agent
August 2005
Weather Investments
E£ 70,000,000(USD 11,971,419)Acquisition of a global Swiss trademark and
subsequent capital raising
Exclusive Financial Advisor
June 2006
E£ 100,000,000(USD 17,220,922)
Capital Increase in Mena for Touristic and Real Estate
Development
Exclusive Financial Advisor
August 2006
Investment BankingFinancing Transactions | M&A and Corporate Advisory
E£ 575,000,000(USD 99,071,656)
Capital Increase in Orascom Hotels and
DevelopmentCo-advisor and Placement
Agent
November 2006
E£ 464,069,650(USD 79,806,575)
Acquisition of a 26% stake in NCHD by a consortium
led by Beltone Capital
Exclusive Financial Advisor
December 2006
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E£ 375,857,349(USD 60,006,506)
Sale of Celtel International’s shares in
Vodafone Egypt
Lead Placement Agent and Bookrunner
September 2004
Investment BankingFinancing Transactions | M&A and Corporate Advisory
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Investment Banking | Significant Transactions in KSA
SAR 200,000,000(E£ 309,250,000)Initial Public Offering
Financial Advisor and Arranger
February 2007
E£ 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
SAR 105,000,000(E£ 157,664,850)Initial Public Offering
Financial Advisor and Arranger
October 2007
Trade Union Cooperative Insurance
SAR 80,400,000(E£ 120,726,228)Initial Public Offering
Financial Advisor and Arranger
October 2007
Al Sagr Cooperative Insurance
SAR 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
Saudi Arabian Cooperative Insurance
SAR 40,000,000(E£ 61,729,200)
Initial Public Offering
Financial Advisor and Arranger
May 2007
Al-Ahlia Cooperative InsuranceSAR 70,000,000(E£ 108,237,500)
Capital Increase
Financial Advisor
February 2007
SAR 357,000,000(E£ 511,420,350)
Sale of 55% of Al Sawani to Global Investment
House
Financial Advisor
July 2008
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• Banque Misr Money Market Fund in E£, US$ and Euro
• 401(k)-type tax efficient savings plan• Beltone MENA Equity Fund• Suez Canal Bank Equity Fund• ABC Money Market Fund in E£• HSBC Money Market Fund in E£• Misr El Kheir Periodical return Fund E£• Arab Bank Money Market Fund E£• Banque Du Caire Money Market Fund E£• Beltone Technical Fund• NSGB Balaced Fund
Asset Management
Beltone Asset Management is the leader in its industry, with assets under management in excess of EGP 21.7 billion*, driven by our capacity to continuously introduce innovative products
PRODUCT SNAPSHOTS
* As of July 31st, 2011
• Equity funds and portfolios investing in Egypt and the MENA region
• Shariaa compliant equity funds and portfolios investing in Egypt and MENA
• Fixed income funds and portfolios as well as Shariaa compliant products
• Saving and pension plans
• Money market funds and accounts
Launched with Banque Misr and Egypt Post - the first in MENA
• E£, US$ and Euro
• Low minimum entry - E£ 10,000
• No entry or redemption fees
• Linked to ATM machines
• Interest added daily
• Liquidity
• Flexibility
• More funds in the pipeline sponsored by prominent Egyptian banks
• Fixed Income Fund
• Balanced Fund
• 2 Money Market Accounts
• ETF
Launched with Suez Canal Bank
• Low minimum entry - E£ 5,000
• No minimum post initial subscription
• No entry or redemption fees
• Daily subscription and redemption
The MENA Equity Fund is listed on the Irish Stock Exchange in Dublin
• The Fund invests in companies listed in MENA
• The Fund invests up to 10% in pre-IPO’s
• Safe Haven Provision
• Low minimum entry (US$ 10,000)
PRODUCT OFFERING
MONEY MARKETS ACCOUNTS
PRODUCTS UNDER MANAGEMENT
MENA EQUITY FUND
PRODUCT PIPELINE
EGYPT EQUITY FUND
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Asset Management | Wide Range of Product Offerings
Through our knowledge in launching and managing funds, we have gained the experience of the regional asset management business which enabled us to develop innovative products that cater to varying risk-return profiles through offering different asset classes and management styles across MENA
Money Market
Fixed Income
Capital Guaranteed
Balanced
EquityLeveraged Equity
Risk
Retu
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• Bahrain • Egypt • Libya • Lebanon • Jordan • KSA • Kuwait • Morocco • Oman • Qatar
• Tunisia • UAE
Remarkable industry experience catering toall investor profiles
More than 12 years of regional experience
• From Money Market to leveraged Equity • From Plain Vanilla to Structured Products • From Morocco to Oman • From Conventional to Islamic
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Asset Management | Diligent Investment Process
Specialization and focus, combined with Beltone’s Country-Country-Sector (CCS) value added fundamental process result in lucrative stock selection and exceptional performance
SPECIALIZATION AND FOCUS
Specialized independent departments supporting a focused Portfolio Manager, scrutinized by internal audit and compliance
DILIGENT INVESTMENT PROCESS
Country focused portfolio managers & sector driven analysts create a ‘top down’ approach with a ‘bottom up’ over-lay implemented and monitored through daily, weekly and monthly meetings
FUNDAMENTAL APPROACH WITH THE MAIN ALPHA DRIVERS
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BELTONE CAPITAL
Beltone Capital, our first fund, was established in the second half of 2006, to invest in Egyptian companies with strong, capable management, privatization and turnarounds.
583 mEGP raised
NAV 641 m
BELTONE INVESTMENT GROUP
Beltone Investment Group, a buyout fund, was established in December 2006. It has EGP 418 million fully invested in a controlling stake in a leading real estate development company with one of the biggest land banks in Egypt.
418 mEGP raised
NAV 460 m
NAV 313 m
CAPITAL PARTNERS FOR TOURISM MAHASEEL AGRICULTURE INVESTMENT FUNDBELTONE MIDCAP
Capital Partners for Tourism, a buyout fund, was established in April 2010 to invest alongside Beltone Capital in Pickalbatros Holding, a leading budget hotel owner and operator.
MAHASEEL Agriculture Investment Fund, a partnership between Beltone and Kenana, was established in March 2010 to invest in equity and quasi-equity investments in the agriculture sector, agro-food business, and agro-related industries and services.
Beltone Private Equity is in the process of launching an SME fund, Beltone MidCap, in partnership with SIGEFI, the management arm of Siparex Group, a leading French private equity specialist in SME’s.
313 mEGP raised
500m-1bUSD expected to close by end of Q1 2012
39.2 mUSD raised
REAL ESTATE
A specialty real estate investment vehicle focused on acquiring, refurbishing and leasing of historic real estate assets in Downtown Cairo.
380 mEGP raised
NAV 431 m
Private Equity | Current funds
As at end of July 2011, Beltone Private Equity had assets under management of more than EGP 2.1 billion
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• Structured as an investment company under Egyptian law
• Paid-in capital of EGP 583 and NAV of EGP 641 million
• Currently raising capital by EGP 116.5 million to fulfill imminent requirements of sizeable deal flow
• Seeks control through majority stakes either directly or in combination with co-investors and related firms
• Maximum exposure of 20% per investment, and 25% per sector
• Diverse base of shareholders including the European Investment Bank and prominent Egyptian and Saudi high net worth individuals
Headline Terms
BĒARDGIZA SYSTEMS
• Beltone Private Equity launched Beltone Capital in 2006, having raised 583 million to invest predominantly in Egyptian companies with strong, capable management and growth prospects. The fund is fully committed and invested
• Beltone Capital is invested in a variety of portfolio companies, the first of which was Giza Systems, one of Egypt’s most prominent system integrators and the market leader in the Egyptian telecommunications and utilities IT space
• Other investments include a manufacturer of flatware and hollowware, an acquisition that included the purchase of the Swiss brand, BĒARD, a favorite among 5-star hoteliers worldwide. BĒARD has operations in both Egypt and Mexico, and the roll-out plan includes three additional factories under construction globally, with substantial growth prospects for this business
• In addition, the Beltone Capital has co-invested in Medinet Nasr Housing and Development, alongside Beltone Investment Group, a special-purpose vehicle established for the Medinet Nasr acquisition, and is participating in a niche-based real estate project.
• Beltone Capital is also an investor in the Beltone Retail Fund, a specialized fund committed to consolidate successful retail operations and franchises with a focus on the Egyptian and MENA retail sector
• Beltone Capital also co-invested alongside Capital Partners for Tourism, a buyout fund, established to invest in Pickalbatros Holding, a leading budget hotel owner and operator
Description
Private Equity | Overview of Beltone Capital
MNHD PICKALBATROS HOLDING
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• Launched in December 2006, BIG is a buyout fund with EGP 418 million raised for the purpose of co-investing alongside Beltone Capital in the acquisition of Medinet Nasr Housing and Development, one of the most undervalued real estate assets traded on the Egyptian Stock Exchange, with a historically problematic land bank of over 10 million square meters.
• In December 2006, Beltone Private Equity launched a tender offer for the acquisition of 40% of Nasr City, and successfully acquired 31.2% of the company in its second attempt
• As MNHD’s largest shareholder, Beltone and its affiliates currently have 4 out of 9 Board of Directors, and a managing director elected by the board
• The buyout fund has provided Beltone a new track record in real estate, which has ultimately come to reshape the focus of our future investment strategy
• Beltone Investment Group is currently valued at EGP 460 million as of July 31st, 2011
Date of initial investment: 2006
% of ownership*: 31.2%
Total commitment*: EGP 560 m
Market Value 31/7/2011*: EGP 620 m
*Note: these figures include co-investment by Beltone Capital, and include incremental purchases since the tender offer date
Description Basic Statistics of the Investment
Investment StrategyPHASE I
CHANGE OF CONTROL PROBLEM RESOLUTION VALUE CREATION REALIZATION OPTIONS
PHASE II PHASE III PHASE IV
• Government control to private control
• Resolution of long-standing land disputes with various authorities
• Identification of new management
• Creation of a master development plan for large plots, and development of plots internally as well as through joint ventures with prominent developers
• Operational restructuring of subsidiaries
• Land bank acquisition
• Strategic sale of company
• Divestiture of equity stake
• Merger
Private Equity | Overview of Beltone Investment Group
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• Established in April 2010, CPT is a buyout fund with EGP 313 million raised for the purpose of co-investing alongside Beltone Capital in the acquisition of a minority stake in Pickalbatros Holding (“Pickalbatros”)
• Pickalbatros was established in 1992 by Kamel Abou Aly as a privately-owned resort and hotel property owner and operator
• Pickalbatros specializes in the development and management of a wide variety of hotel properties located in prime destinations in Egypt and Morocco
• Today, Pickalbatros owns, rents, manages and operates 16 hotels and resorts in strategic locations throughout Egypt and Morocco, with a total capacity of approximately 7,500 rooms
• Pickalbatros offers customers various tourist attractions, family and entertainment services
• Pickalbatros is the leading provider of integrated leisure and hospitality services…
• …Boasting the largest portfolio of hotels, resorts, and various tourist attractions
• …Owning, renting, managing and operating approximately 7,500 rooms between 16 hotels and resorts
• …Possessing the largest market share in the Hurghada 4- and 5- star hotel market of 17%
• …Boasting impressive average occupancy rates of 94%, positioned as a leader in the resort and all-inclusive hotel market, with average room rates at USD 66 in 2009
• …Operating a successful business model based on efficient and timely property development, customer targeted marketing and sales strategy and leveraging a global network of agents
• …And is well positioned to capture the anticipated growth in the hotel market
• …Enjoying revenue and EBITDA growth at a CAGR of 39% and 41%, respectively, over the past three years
Vintage Year: 2010
% of Ownership: 18.8%
Total Commitment*: EGP 435 mn
*Note: these figures include co-investment by Beltone Capital, and include incremental purchases since the tender offer date
Description
Investment Highlights
Basic Statistics of the Investment
Private Equity | Overview of Capital Partners for Tourism Ltd.
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• The project is a unique niche-based real estate development project, created in association with a dedicated project sponsor
• Co-founded by Beltone Private Equity and Amwal al Khaleej, and managed by Beltone Private Equity
• The project’s vision is to acquire, evict, and refurbish historic real estate assets that are architecturally superior
• It also involves the creation of building clusters to develop commercial pedestrian districts that are aesthetically congruent
• Returns are to be generated from rent as well as asset appreciation
• The project is a long-term venture that aims to have a property development and property management function to optimize returns to shareholders
• Target: one million sqm in Cairo’s Downtown area, providing critical mass to enable the creation of an integrated commercial location, leading to asset appreciation
Vintage Year: 2008
Total paid-in capital: EGP 380 m
NAV: EGP 431 m
Description Basic Statistics of the Investment
Private Equity | Overview of Beltone’s Down Town Real Estate Project
Project Phases
1. BUILDING ACQUISITION 2. EVICTION 3. RENOVATION
To date, 20 buildings covering a total built up area of 70,000 sqm have been acquired, while 26 buildings are in the due diligence and deal closure phase of the acquisition process
The project is in the process of raising EGP 500 mn of external capital to finance additional acquisitions
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• Incorporated in Luxembourg
• Sub-Funds are closed ended for a duration of 8 years each, extendable to 10 years
• General Partner is a partnership between Beltone Private Equity and SIGEFI Private Equity
• Investment Manager is Beltone Private Equity
• Investment Period is 4 years
• First Closing was Q4 2009
• Invests in significant minority stakes and selected majority in companies with operating history, with revenues of USD 5-50 million per annum
• Investment size ranges between USD 5 – 10 million
• Maximum exposure of 10% per investment and 25% per sector
Headline Terms
• Beltone MidCap Fund is targeting to raise USD 200 million to invest in two Sub-Funds, in Egypt (USD 100 million) and the GCC (USD 100 million). The Egypt Sub-Fund had its first closing on September 15th 2009 with secured commitments of USD 30.5 million, and its second closing on July 15th 2010 with secured commitments of USD 39.2 million. Final closing is expected to be on March 31st 2011. The GCC Sub-Fund’s is expected to have its first closing in 2011
• The Fund was created to capitalize on the underdeveloped status of the SME sector in Egypt and the GCC region, to fulfill funding requirements of this underserved segment, and to promote the SME role in economic development at large
• The General Partner is Beltone MidCap Management S.A, a partnership between Beltone Private Equity 75%, and SIGEFI 25%, the private equity management arm of France’s Siparex Group
• Founded in 1977, Siparex has a top-notch reputation recognizable by the most prominent French and international investors as a specialist in the investment management of SMEs
• Sectors of interest identified for the Egypt Sub-Fund are those with competitive edge and export potential, including but not limited to niche-based textiles, food processing and agri-business, plastics and packaging, and services
• The Fund already has a pipeline of six companies under consideration, with important criteria including companies displaying rapid growth potential, ambitious and dynamic management, clear competitive distinction, ability to create value by focusing on core strengths of Beltone and SIGEFI, and potential upside in exit
Description
Private Equity | Overview of Beltone MidCap Fund
Beltone and SIGEFI: A unique and complementary partnership addressing the SME challenge
BELTONE PRIVATE EQUITY SIGEFI / SIPAREX
• Regional presence
• Access to deal flow
• Fund-raising capabilities
• Structuring expertise
• Strong understanding of domestic investment dynamics
• SME experience
• Corporate governance and technical support
• European business network
• Investment advisory support
Lack of a robust and dynamic medium enterprise sector has resulted in what has come to be known as “the missing middle” syndrome,
resulting in weak linkages between the large-scale and SME sectors, and dependence on imports to fulfill the requirements of large corporations
Beltone and SIGEFI, by providing access to capital, human resources, and strategic direction to SMEs, aim to play an integral role in promoting the sector
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• MAHASEEL L.P. is a Cayman Islands exempted limited partnership
• Target Size: USD 500 million to USD 1 billion
• Fund Term: 8 years extendable by 2 consecutive one year periods
• Investment Period: 5 years
Headline Terms
MAHASEEL provides investors the potential opportunity to achieve medium to long-term capital appreciation through direct exposure to the agriculture and agribusiness sector by offering:
• A unique investment proposition that seeks to address the region’s food security concerns
• A compelling investment mandate that covers attractive Greenfield projects and private equity opportunities in the agriculture sector, agribusiness and agro-related industries and services
• A comprehensive investment approach that combines traditional and industrial agriculture across Sudan and Egypt
• An integrated investment strategy that focuses on opportunities arising from variable demand and supply needs across countries in the Middle East and North Africa region
The fund will focus on investing across the wide agriculture spectrum; starting with opportunities in primary agriculture business through to the value added, food processing, and retail businesses in the MENA region, with an initial focus on Sudan and Egypt
Egypt: Huge Market With Enormous Demand Potential
Sudan: Immense Agriculture Potential and Need for Rural Development
GCC: Abundant Capital Resources and Interest in Food Security
Description
Fund’s Investment Strategy
Private Equity Overview of MAHASEEL Agriculture Investment Fund
LOGISTICS&
DISTRIBUTION
PROCESSING &
MANUFACTURING
RETAIL OF AGRICULTURAL
& AGRO-RELATED PRODUCTS
AGRICULTURE - FARMING & PROCESSING
AGRICULTURE VALUE CHAIN
الــزراعــي لإلسـتـثـمــار AGRICULTURE INVESTMENT FUNDصـنــدوق
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Securities Brokerage
Single broker contact available in markets with Beltone presence
• Egypt• UAE
Beltone Securities focuses on institutional investors from the US, Europe and the region along with high-net-worth individuals, executing and settling seamlessly in several markets by leveraging a strong proprietary network as well as strategic partnerships
Brokerage clients• US• UK• Ireland• Germany• Switzerland• Egypt
• France• Kuwait• KSA• UAE• Bahrain • Qatar • South Africa
over 1,200 clients worldwide
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Securities Brokerage | Landmark Transactions
Transaction: Orascom Building Materials
Buyer: LAFARGE
Seller: OCI
Date: January 2008
Value: EGP 71 billion
Orascom Building Materials Holding
Transaction: EFC
Buyer: OCI
Seller: ABRAAJ Capital
Date: March 2008
Value: US$1.6 billion
Egyptian Fertilizers Company
Transaction: Placement
Buyer: Institutional Investors
Seller: Ripplewood
Date: December 2009
Value: EGP 765m
Commercial International Bank
Transaction: ECHCO
Buyer: DP WORLD
Seller: OCI
Date: February 2008
Value: EGP 3.7 billion
Egyptian Container Handling Co.
Buyer: Sanpaolo IMI SPA
Seller: Government of Egypt (GOE)
Date: October 2006
Value: EGP 9.2 billion
Bank of Alexandria
Merger: Banque du Caire with Banque Misr
Date: May 2007
Value: EGP 1.6 billion
Banque Misr Banque du Caire
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Research
Beltone Research Products
Company-Specific ProductsGeneral Market Products Sector-Specific Products
• MENA Morning Bell, that covers regional daily news
• MENA Daily Statistics, that covers regional markets’ performance
• Between Bulls and Bears, that covers regional technical analysis
• Initial Coverage Reports
• Company Update Reports
• Company Newsflash Reports
• Sector Reviews
• Regional Economic Research
• Regional Strategy Research
• Thematic Research
Beltone’s Research Department is acknowledged as the authoritative source for qualitative and quantitative information on the MENA region’s rapidly expanding capital markets. By the end of 2011, coverage will extend across the difference sectors within the region, to reach more than 70 stocks.
RESEARCH PUBLICATIONS
2006
2007
2008
2009
44
72
92
131
2005 5
COMPANY COVERAGE | MENA REGION
2006
2007
2008
2009
12
31
53
58
2005 5
* As of July 31st, 2011
2010
2011
147
147*
2010
2011
56
58*
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Research | Countries Covered and Distribution
• Algeria • Austria • Bahrain • Belgium • Canada • Chile • Cyprus • Czech Republic • Denmark • Egypt • • Libya • France • Germany • Greece • Hong Kong • Italy • Japan • Jordan • KSA • Kuwait • Lebanon • • Malaysia • Netherlands • Norway • Pakistan • Philippines • Qatar • South • Africa • Switzerland • Syria •
• Thailand • Turkey • UAE • UK • Ukraine • USA • Yemen •
Covered by research
Research distributed 32 countries
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Beltone Securities Holding
The Custody team comprises highly qualified industry specialists with experience in leading regional and international investment banks.
Beltone Securities Holding is regulated by the Egyptian Capital Market Authority. Assets and processes are in compliance with all regulations in the diverse markets in which Beltone operates.
• Safe custody of assets
• Income and dividends collection
• Corporate action processing
• Proxy voting processing
• Standard custody reporting
Currently more than E£18.5 billion*. Investors benefit from fast execution and settlement through the efficient receipt, delivery and safekeeping of securities, cash and foreign exchange
Beltone Securities Holding gives clients the benefit of their assets held under direct operational control for rapid and seamless exectution
* As of July 31st, 2011
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Beltone Academy
The Beltone Academy, first established in 2007, ensures the constant flow of excellent talent into Beltone. Out of hundreds of applicants, only the top 20 are selected after rigorous testing and interviews. The academy courses are designed to develop their knowledge and skills to pursue their careers in the financial services industry.
• Develop a world class financial services industry in the MENA region
• Taking a leadership role to develop a core of top-notch professionals
• Investing time and resources to identify and mentor future leaders
• Sharing Beltone’s global knowledge, skills and experience
• Offering young people unrestricted opportunities
• Contributing to MENA’s overall economic growth
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