e& Enterprise, a subsidiary of Emirates Telecommunications Group Company "e&", has signed a binding agreement to acquire a majority stake in Beehive Group, "Beehive", the first regulated online marketplace for peer-to-peer lending to SMEs in the MENA region, according to a regulatory filing with Abu Dhabi Securities Exchange.
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e& Enterprise Stake in Beehive
The acquisition will see e& Enterprise acquiring a 61 per cent - 69 per cent stake in Beehive at an enterprise value of USD 35 million through a combination of primary capital injection and acquisition of existing shares. The financial impact is expected to be immaterial to the Group's consolidated financials, and the transaction will be paid in cash.
Beehive, which was founded in 2014 and based in the Dubai International Financial Centre, is the leading crowdfunding platform in the region. It connects creditworthy businesses seeking finance with investors, both private and institutional.
According to the statement, The company does not take on any credit risk, which is entirely borne by the investors. Completion of the transaction remains subject to regulatory approvals, customary closing conditions, and administrative procedures.
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Acquisition to expand presence in fintech industry
The acquisition of Beehive by e& Enterprise is a significant milestone in the company's efforts to expand its presence in the region's fintech industry. The move will enable e& Enterprise to tap into the high-growth potential of the peer-to-peer lending market in the MENA region and leverage Beehive's expertise and knowledge in the space.