Amazon buys 4 Percent of valU in exchange for $10 Million

EFG Hermes Holding fully owned subsidiary valU Consumer Finance (valU) entered into an agreement for the Provision Of Consumer Financing By valU as A Payment Method On Amazon.eg (Commercial Agreement).

valU will make some its consumer financing products accessible to eligible customers on Amazon.eg. These customers have the option to split total purchase cost into multiple payments with valU.

EFG Hermes and Amazon signed an option agreement in which Amazon agreed to purchase $10 million of EFG Hermes GDRs, with the option of replacing that investment into valU at a later date. This would translate into a stake equivalent to 4.255 per cent on the issued capital of valU based upon a current post-money value of valU as $235 million.

This option can be exercised prior to or after the occurrence of a qualified liquid event at the level valU. It could take the form of an independent investment involving investors, a sale or an initial public offer or other listing event, depending on the terms and condition of the transaction agreement.

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