The European Bank for Reconstruction and Development (EBRD) and Actera Group, the top private equity firm in the nation, have sold Tam Finans, a prominent commercial finance company in Turkey with a loan book exceeding US $300 million, to MNT-Halan, Egypt’s largest non-bank financial institution and fintech. The transaction’s terms were kept a secret.
With a population of 85 million, a GDP of over $1 trillion, and a household debt-to-GDP ratio of only 11.7%, Turkey presents a sizable market opportunity. MNT-Halan offers digital financial solutions that have the potential to revolutionize both businesses and individuals, and they present significant growth prospects for the banking industry.
Commenting on the transaction, MNT-Halan’s founder and CEO Mounir Nakhla said, “Today, MNT-Halan joins forces with Tam Finans to provide millions of businesses and consumers access to innovative financial services in Turkey. Combining Tam Finans’ credit models, distribution capabilities, and management team with MNT-Halan’s technology, customer-facing app, and financial muscle will help complete the product offering and give greater confidence to all its stakeholders. Turkey and Egypt’s histories and cultures have been intertwined for hundreds of years and their current economic outlook points to a bright future that we are ready to capitalise on.”
Hakan Karamanlı, Tam Finans’ CEO, said, “We are delighted to join the MNT-Halan family. Their core belief that financial access enables people to fulfill their dreams mirrors the same ethos we have built our company on. MNT-Halan’s scalable technology will now allow us to grow faster and take our mission to more businesses and people as we capture cross-selling opportunities through an expanded product and services offering.”
This acquisition illustrates the scalability and diversification of the business model of the company and comes soon after MNT-Halan’s entry into Pakistan. The International Finance Corporation (IFC) and current investors, such as Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp, recently contributed $157.5 million to the company. Their sustained investment shows their faith in the Egypt-born company’s capacity to grow and broaden international access to financial services.
Clifford Chance advised the sellers, while Maatouk Bassiouny & Hennawy, Esin Attorney Partnership, and Van Campen Liem advised the buyers on legal matters. PWC advised the buyers financially and commercially. BCG served as the sellers’ financial and business advisors.
