CI Capital advises on Raya Holding’s $15M subsidiary stake sale to Africa50

Updated 12/12/2024 8:29:00 AM

Arab Finance: CI Capital has concluded its advisory on Raya Holding’s $15 million stake sale in its subsidiary, Raya Data Centers, to Africa50, according to a press release.

CIIB acted as the exclusive sell-side financial advisor to Raya Holding. This transaction is expected to anchor the company's leading position in the IT and system integration space on the local and regional levels.

Africa50’s acquisition bolsters Raya Data Centers’ capabilities and expansion potential amid growing demand for reliable and scalable data center services in Egypt and across the region.

The strategic collaboration between Raya Data Center and Africa50 aims to address digital infrastructure gaps across Africa.

Executed as a primary offering, the acquisition deal involved a capital raise, with the proceeds directed to supporting Raya Data Centers’ significant expansion plans.

These plans include establishing a state-of-the-art data center facility in Egypt, reinforcing the company’s position in cloud computing, co-location, data center security, and electromechanical services.

Hossam Hussein, CFO of Raya Holding, commented: "It [the investment] marks another significant milestone following the $40 million deal led by Helios Investment Partners in Raya Foods, reaffirming the strength of our strategy in attracting major investments across vital and diverse sectors."

“Raya’s transaction serves as a gateway to future opportunities for collaboration, as CI Capital continues to build strong partnerships and act as a trusted advisor in facilitating successful and strategic market moves,” Omar Gaafar, Director- Investment Banking at CI Capital, highlighted.

It is worth pointing out that Africa50 is a pan-African infrastructure investment platform founded by the African Development Bank.

Meanwhile, Raya Holding is a diversified investment company operating across key sectors, including information technology and infrastructure, fintech, retail, and distribution, Business Process Outsourcing (BPO), hospitality, and logistics, among others.