The stock exchange market has granted approval to Credit Agricole Egypt to purchase the remaining shares of the Egyptian Housing Finance Company (EHFC), reported AME Info. Accordingly, EHFC has become entirely owned by Credit Agricole Egypt with a total of 99.98% of the shares. EHFC, established in 2004, provides funds for home purchasing, home construction, home renovation and refinancing.
As a result of this acquisition, Credit Agricole Egypt banked out the shares of IFC (20%), OPEC (20%) and HDFC (10%) with a total deal reaching LE70m. EHFC’s financial portfolio is comprised of 30% for high income, 60% for medium income and 10% for low income as part of the national housing project. The company will be operating as an independent subsidiary of the bank and the existing management team and employees will remain unchanged.
Henri Guillemin, MD of Credit Agricole Egypt, said: “We are very pleased with the acquisition of EHFC. The addition of this mortgage finance arm is consistent with our expansion plan through diversifying and strengthening our lines of business. EHFC has a strong record in providing mortgage finance in the country. We believe that this investment will enhance our revenues as well as our shareholders’ value.”
Hala Bassiouni, MD of EHFC, said: “Although mortgage finance is a newly introduced concept, Egypt is an emerging market with high potential for growth. While the local real estate sector has encountered periods of stagnation, it is foreseen to prosper significantly. Credit Agricole Group’s vast experience, coupled with our local market expertise, will allow EHFC to effectively fulfil the needs of the Egyptian community.”
