Pioneers to buy Beltone Financial
Pioneers said it would issue 100 million new shares
Cairo () Egyptian financial services firm Pioneers Holding said yesterday it would buy investment bank Beltone Financial in an all-share deal, pushing its share price 9 per cent higher.
Pioneers said it would issue 100 million new shares at a yet-to-be-determined price representing Beltone's total value and giving Beltone shareholders a 17 per cent stake in the merged company.
"The board of directors of Pioneers Holding agreed to merge with Beltone Financial by raising the company's capital and exchanging its shares with the holders of Beltone shares," Pioneers said in a statement.
Shares in Pioneers jumped as much as 9 per cent as investors saw a good combination of market expertise.
"It is definitely something positive for investors," said Hashem Goneim from Pyramids Capital. Goneim said Pioneers shares are traded at a discount to its peer EFG-Hermes and that its expertise in retail fitted well with Beltone's focus on institutions.
