CI Capital Investment Banking Advises Arafa Holding on Sale of 38% Stake in Leading Egyptian Luxury Retailer for EGP 152 Million

10 January 2013

Cairo, Egypt – CI Capital Investment Banking acted as the exclusive sell-side advisor to Al-Arafa for Investments and Consultancies (Arafa Holding, AIVC.CA on the Egyptian Exchange) in the sale of a 38% stake in Concrete for Ready Made Garments to the direct investment arm of Commercial International Bank (CIB, COMI.CA on the Egyptian Exchange) for total consideration of EGP 152 million. Following the transaction, Arafa Holding will remain the majority shareholder in Concrete with a 52% stake.

The transaction was executed on 10 January 2013, marking the second successful closing for CI Capital Investment Banking in 2013.

Established in Egypt in 1989 by Amr El Hakim, Concrete was later acquired by Al Arafa for Investments and Consultancies — one of the largest export-oriented and vertically-integrated apparel and textiles manufacturers in Egypt and the Middle East. With a branch network exceeding 9,000 sqm across 47 locations in Egypt, Concrete is Arafa Holding’s key stronghold in the Egyptian retail market. The company’s lines of business include menswear and kidswear in addition to the newly-introduced bespoke “Made-to-Measure” tailoring service offered in its flagship store in Mohandiseen.

Concrete achieved net sales of EGP 205 million and EGP 96 million during FY 2011 and H1 2012, respectively.

In addition to the Concrete brand in Egypt, Arafa Holding’s retail operations include the Baird Group, a leader in the UK suits market with a 12% market share. Arafa also controls a 35% stake in Gruppo Forall, the Italy-based owner of the prestigious PAL ZILERI brand.

CI Capital Holding is a wholly-owned subsidiary of Commercial International Bank and is a leading investment banking franchise offering the only true universal banking platform in Egypt, with the full range of financial services across the advisory product range and capital structure.

Despite difficult market conditions in 2012, CI Capital Investment Banking had a transformative year, during which the business underwent a significant restructuring that centered on bolstering the senior team. Two managing directors were hired to lead the transformation of the franchise, bringing a combined 27 years of experience at top-ranked regional and international financial institutions.