Oasis Capital Egypt concludes first investment in Shamsi Group and debt buy back from Banque Du Caire

The investment was made through a simultaneous capital increase and debt buy back from Banque du Caire. The signing of the agreement took place, 5th of January 2006 in the presence of Mohammad Barakat, Chairman of Banque du Caire, Naguib Sawiris, Chairman of Oasis Capital, and Ammar Shamsi, Chairman of Shamsi Group.

Naguib Sawiris confirmed, "The fund's strong belief in the Shamsi business model and in its ability to take full advantage of Egypt's preferential manufacturing and trading position through the utilization of QIZ and EU-Egypt Association Agreements." He also noted, "The strong cooperation the fund received from Banque du Caire as a stellar example of private - public sector cooperation in the working out of the debt and giving a new life to Egyptian companies in need of financial restructuring."

Ammar Shamsi stated "We are really happy in the new partnership with Oasis Capital." He added, "We believe it will facilitate the Group's international expansion into new markets and up-scaling of our manufacturing capabilities." Shamsi attributed the Group's success in manufacturing to international buyers such as GAP, Ralph Lauren, Levi's, M&S and to their experienced management team, highly qualified cadre and the state-of-the-art machinery. He also added that the Group's local accomplishment via its highly recognized local brands Dalydress, 2Play and Shatex Home Collection will soon be seen in the Gulf market with the opening of its first shop this month.

CEO Oasis Capital, Ali Al-Dajani, announced that "The transaction size was over LE 150 million for an undisclosed majority stake in Shamsi Group, and came as a vote of confidence in the health of the Egyptian economy and the positive catalytic role played by the government as a facilitator, especially in the textile and ready-made garments sector." Al-Dajani highlighted that upon the completion of the transaction, the six Shamsi operating companies will be consolidated under one holding structure, thus resulting in the first Egyptian vertically integrated textile company that does weaving, knitting, yarn dying, fabric dying, printing, finishing, garment manufacturing and retailing. He further confirmed that this vertical integration uniquely positions Shamsi Group to quickly and efficiently respond to the local and international market requirements and challenges.

The Shamsi Group of companies is a family owned business established in Cairo, Egypt in 1958 and is a leading Textile & Garments manufacturer, distributor & retailer not only in Egypt but in the region. The Shamsi Group has over 3,000 employees, six companies and 39 retail outlets.

Oasis Capital Egypt is a newly formed US$ 150 million private equity fund exclusively specializing in Egyptian non-listed investments only. The fund partners are Naguib Sawiris, Olayan Finance Group and Majed Al-Futtaim Investment Trust.