EFG Hermes Advises on Landmark Acquisition of AutoWorld by Budget Saudi
Riyadh: In a strategic move that underscores its leadership in investment banking within the Middle East and North Africa (MENA) region, EFG Hermes has announced the successful completion of advisory services for the substantial USD 121 million acquisition of Al-Jazira Equipment Company Ltd (AutoWorld) by United International Transportation Company Ltd (Budget Saudi). This acquisition marks a pivotal consolidation within the vehicle leasing industry, enhancing Budget Saudi’s market position.
AutoWorld, previously under the ownership of SEDCO Holding — a prominent Saudi family office and institutional investor — will now be fully integrated into Budget Saudi’s operations. The acquisition deal involves a 100% share swap, with Budget Saudi issuing 7.0 million new shares at SAR 65 per share to SEDCO Holding through its subsidiary Al Jozoor Al Rasekha Trucking Company (Rahaal).
Commenting on the transaction, Karim Meleka, Co-Head of EFG Hermes’ Investment Banking division, highlighted the deal’s significance to the mobility solutions sector in the Kingdom of Saudi Arabia. “This merger not only signifies a remarkable milestone for both entities but also for the industry at large, fostering innovation and operational efficiency. Our role in facilitating this transaction underscores EFG Hermes’ enduring commitment to value creation for our clients and the broader economic landscape,” Meleka stated.
The successful outcome of this transaction adds to EFG Hermes’ growing list of advisory accomplishments in the GCC region’s M&A landscape. Notably, the firm played a pivotal role in recent transactions involving prominent companies such as Cenomi Retail and the MENA-based discount retailer Kazyon, demonstrating its expertise and broad reach across key sectors.
About EFG Holding
EFG Holding stands out as a pioneering financial conglomerate with a 40-year track record of success across nine countries on three continents. Encompassing an investment bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) under EFG Finance, and aiBANK for commercial banking, EFG Holding distinguishes itself through a comprehensive assortment of innovative financial products and services catered to a diverse client base, ranging from individuals to large corporations.
With EFG Hermes at the forefront of investment banking in MENA, the holding offers an expansive suite of financial services including advisory, asset management, securities brokerage, research, and private equity. The conglomerate’s NBFI platform, led by EFG Finance, encompasses a wide array of services targeting micro and small enterprises, alongside leasing, factoring, digital payment solutions, mortgage finance, and insurance, reaffirming its position as a dynamic financial services provider.
For additional information about EFG Holding and its breadth of services, interested parties are encouraged to visit the company’s official website.
Note on Forward-Looking Statements
This communication may contain forward-looking statements that reflect EFG Holding’s current views about future events and are subject to risks, uncertainties, and assumptions. Such statements include projections about the company’s future performance, market dynamics, and potential growth opportunities. Readers should understand that these forward-looking statements are not guarantees of performance and involve known and unknown risks. Therefore, actual results may differ materially from those expressed or implied by such forward-looking statements due to various factors.
