FEP Egypt Acquire Majority share in White House Securities

FEP Egypt Direct Investment and Asset Management, affiliated to regional FEP, announced it acquired majority share in White House Securities (WHS) with 67%. The step comes among FEP expansions in direct investment in Egypt, and to complete its investment plan that varied between heavy industries, financial services, and small and medium projects.

Qais Almaskati, CEO of FEP, commented on the last agreement the group conducted, acquiring majority share in W.H.S by saying that it is a step that proves the attractiveness of the Egyptian market to investments and the group’s positive vision of the market in the long term.

He added that the group opened its offices in Egypt three years ago, despite what the country was going through in unpropitious circumstances. However, it still believes Egypt has promising investment opportunities, a large market and a bright future being reformed, so it decided to cooperate with investments in the success story Egypt currently writes. Omar El-Maghawry, Deputy CEO of FEP and Chairman of FEP Direct Investment – Egypt, that plans were put to turn W.H.S into a complete investment bank, in addition to increasing the capital in order to cover the needed cost of practicing most of the activities available in the Egyptian money market.

W.H.S has licenses in the practices of managing portfolios, promotion, covering subscription, corporate sponsorship in Nile Stock Exchange (NILEX), and activities of holding companies as well. Omar El-Maghawry added that capital of WHS was increased by asking the Egyptian Financial Supervisory Authority (EFSA) EGP 20bn to include the activities of managing investment funds and market maker. It will be asked as well to change its name to FEP Capital to be the financial arm of the group in Egypt.

FEP Direct Investment and Asset Management plans to activate the activity of managing portfolios in WHS to make the assets under management amount at about EGP 2bn before the end of 2015.

Regarding the activity that W.H.S known for, which is the sponsorship of medium and small companies and list them NILEX, it is expected to witness more focus and attempts to keep its rank as the top company in this field.

Chairman of FEP Direct Investment – Egypt, Omar El-Maghawry, said that activity of investment banks will be intensively expanded through FEP Capital, adding that negotiations over managing one of the biggest public placements in the Egyptian money market during the next period are ongoing, and will be announced after signature.

In seeking to complete the activities, FEP Capital will practice the group of services it offers to its clients. FEP is currently working on supporting the company with high qualified cadres regarding professionalism and institutionalized performance, in addition to launching a study center to serve clients and the investments being implemented.

“I advise investors to enter Egyptian market before reform completion. Build your investment now with low prices before reforms in the system and the increase in investments to enter the Egyptian market”

Chairman of First Equity Partners (FEP), Amr El-Maghawry, advised investors looking for new opportunities with low costs.

According to El-Maghawry, geopolitical, structural, bureaucratic and administrative risks are an obstacle for any investor who wants to enter the market now. However, the government’s efforts to reform the system is almost done, which will significantly increase the cost of entering the market on investors.

FEP Chairman Amr El-Maghawry emphasized the importance of the government’s plans to be included as part of the Economic Summit

He stressed the importance of including government plans in the Economic Summit, with a full vision that would give all aims and strategies. El-Maghawry added that he is hopeful the government would be ready to answer questions with transparency regarding the infrastructure and the plans for the energy sector, and whether it will propose energy projects to fill the demand of every region or whether the investor bear all the costs alone.

He also demanded there be a way to balance the job opportunities the projects will offer, and the investment incentives in order to encourage new industries and increase the rate of employment.

El-Maghawry added that the way the Investment Authority and the public authorities were established is based on facilitating an investment climate and not supervision. The investor deals with more than 20 entities on average until the project comes to light, and sometimes the number is up to 40 entities of the 58 entities in Egypt. A statement must be published after the summit, in September at the most, to follow up with the project steps they chose and whether they have a clear vision on the obstacles, according to El-Maghawry.

FEP is one of the companies working in management of regional assets. The company has offices in Bahrain and Egypt, and is owned by Kuwaiti Investors Group, managing assets worth $3bn from Morocco and Iraq. The company has a real estate portfolio in London and two-thirds of its investments are in the industrial sector. Recently, FEP acquired 67% of White House Securities (WHS), a company working in sponsoring small- and medium-sized enterprises, and it is listed in the NILEX.

In 2015, the company aims to return the business of portfolio management to WHS and investments under WHS are expected to reach EGP 2bn by the end of this year, including all direct investment portfolios and the stock exchange investments.

He clarified that WHS will have the money under its management for direct investments in the heavy industry, small-sized and medium-sized industries, and it currently studies several companies working in the medium-sized industries worth EGP 200m to EGP 250m.

FEP also established Injazat Data Systems with capital of EGP 10m last year. The company now also owns shares in two companies working in the food industry through increasing its capital, which is at EGP 1.7m.

FEP plans to create a portfolio of four to five companies in the food sector and then serve this sector. It almost signed a contract to own a new company, as well as studies that are being conducted to acquire another two companies. The investment cost was at EGP 2.5 so far and FEP owns shares in most of the two companies.

El-Maghawry added that the company will soon acquire Orix Company, specialized in concrete and building materials in Fujairah in exchange for AED. Previously, FEP acquired a share of 50% of Orix for AED 5m.

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