BusinessDay

EFG Hermes consumer unit enters $10m deal with Amazon

EFG Hermes Holdings, a leading investment bank franchise in frontier emerging markets, has entered a $10million deal with global e-commerce giant – Amazon – via its subsidiary – valU Consumer Finance, the company said in a statement.

Following the agreement entered into with Amazon for the provision of consumer financing by valU as a payment method on the e-commerce giant, Amazon’s customers will be given the option to split the total cost of purchases into multiple payments by using valU.

“In connection with the entry into the Commercial Agreement, EFG Hermes and Amazon entered into an option agreement whereby Amazon agreed to acquire $10 million in EFG Hermes GDRs with the option to replace that investment into valU at a future date, translating into a stake of 4.255percent of the issued share capital of valU, based on a current post-money valuation of valU of $ 235 million,” it said in a statement.

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“The option will be exercisable before or upon the occurrence of a qualified liquidity event at the level of valU, in the form of an independent investment involving third party investors, a sale, or an initial public offering or other listing events, based on the terms and conditions of the Transaction Agreement,” the statement added.

With a presence in 13 countries including Nigeria, across four continents, EFG Hermes has grown over 38years of success to transform from a pure-play investment bank into an impact-driven universal bank.

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